(Jan 12): Indonesia plans to sell US-dollar bonds, the first such offering by an Asian sovereign this year, giving further impetus to a record start to global debt issuance by borrowers in 2026. The sale comes as the administration of President Prabowo Subianto looks to fund a budget deficit that risks exceeding the legal cap of 3% of gross domestic product (GDP) in 2026. Indonesia has set its budget deficit target at 2.68% of GDP this year, with total net bond issuance — including local- and foreign-currency debt — pegged at 799.5 trillion rupiah (RM192 billion) in 2026. The gap hit the highest level in at least two decades in 2025. Citigroup Inc raised its 2026 budget deficit forecast to 3.5% of GDP from 2.7%, citing expectations of faster spending on the free-meals programme and larger transfers to regional governments.

Source: The Edge Markets January 12, 2026 05:07 UTC