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The article focuses on the new bank-ownership rules imposed by Indonesia's central bank and its effect on investments by foreign banks. Bank Indonesia has reduced the stake that can be acquired by a single foreign shareholder in a bank from 99 percent to 40 percent. This has led Singaporean bank DBS to withdraw from a merger and acquisition deal with Bank Danamon. The author expresses concern that the policy would drive off international capital that could help the country's banking sector.

This article reports on the economic and political impact of the election of Bank Indonesia governor Agus Martowardojo. One of his first tasks is to raise rates to keep rising prices under control. It is noted that Martowardojo should consider reduced economic growth and greater rupiah volatility as necessary prices to pay to ensure the recovery of the nation's economy.

The article presents information on the weakening of the Indonesia's currency, rupiah, in 2013. The rupiah has declined against the U.S. dollar following indications of the end of quantitative easing program of the U.S. Federal Reserve. Since then, outflows from Indonesia's domestic bond market have increased.

The author stresses the need for Indonesia to support government bonds by keeping a tight policy stance communicating with the market. She points out Indonesia's need to resist populist measures for several reasons and the Bank of Indonesia (BI) to reassure international bond investors of its ability to contain inflationary pressure. She opposes the resumption of fixed income inflows as the country relies on capital flows.

The article highlights the challenges facing Agus Martowardojo as governor of Bank Indonesia in 2013. It considers how Martowardojo's strategy could impact the image of the central bank and the strength of the Indonesian economy. Ratings agency Standard & Poor's has downgraded its outlook on Indonesia on May 2, 2013, the same day it raised the ratings of the Philippines from BB+ to BBB-. The country's growing fiscal deficit is noted.

The article reports on a forecast that the further tightening of the dollar loan liquidity in Indonesia in 2013, will push banks as well as power, construction and consumer companies into the offshore bond market. According to an analyst, some banks like Bank Rakyat Indonesia (BRI) that are still short in dollars are looking to access dollar markets to cover some of that liquidity. Bank Indonesia (BI) has tried to improve the supply of U.S. dollars.

The article deals with the plan of Indonesia to issue its debut dollar bond for domestic investors in 2013. The country is seeking cheaper funding routes in response to the saturation of the international dollar debt market. Onshore investors will be offered by the country with a U.S. US dollar-denominated bond.

The article reports on the importance of monetary tightening to the Indonesian economy. DBS forecasts that the country will benefit from improving market sentiment as capital inflows will help it to finance its budget deficits. The Indonesian rupiah is expected to strengthen again, providing Bank Indonesia more leeway with monetary policy.

The article reports on ANZ's claim that the strong pace of credit activity in Indonesia may be impossible to sustain. According to the bank, this is because of the sharp rise in loan-to-deposit ratios and because of a reduction in net foreign assets among domestic banks. ANZ also predicts that the country's credit cycle will encounter increased pressure in the second half of 2012 unless external payments positions are improved and greater currency flexibility is promoted.

The article reports that asset manager Barings has increased its holdings in China, while reducing its exposure in India. According to Barings fund manager Sean Chan, he prefers mining, property and quasi-sovereign credits in China. He states that losses are unlikely in China, given the strong reserves and infrastructure support in the country. Aside from China, Chang states that outlook is also positive for several Southeast Asian countries, including Singapore, Indonesia and Malaysia.

The article reports on the Indonesian government's plan to issue bonds denominated in renminbi and won in 2013. These will likely be the first issue intra-regional sovereign deal in Asia, as sovereign debt has only been denominated in domestic or G3 currencies until now. Other countries in Asia are expected to follow Indonesia's lead as the region looks to strengthen internal funding channels.

The article focuses on the plans of Bank Muamalat Indonesia, food company Mayora Indah and toll road company CMNP to issue new sukuk bonds in 2012. The companies have not finalized dates for their bonds issuance, but they are likely to issue deals before the end of June. Their plans are aimed at taking advantage of the decreasing bond yields following higher than expected investor interest in the Indonesian government's Islamic debt auction on April 10, 2012.

The article reports on the performance of emerging market (EM) bonds in Asia in the first three months of 2012. The first three months of the year is said to record high performing risk assets , with EM bonds having an average positive return of 5.3 percent. An explanation on the disparity between high yield and investment grade in Asia is provided. The high yield debt market in Indonesia, and EM bonds in Singapore are also described.