Activity in the local markets has been rather slower, although Waluyanto argues that falling interest rates and the drop in domestic sovereign supply is spurring some activity. “What I hear from the market is that there are a number of corporations in the pipeline who are preparing to issue local currency corporate bonds,” he says. “In total the volume would be much bigger than in 2008; I don’t know exactly but about Rp15 to 20 trillion.”

Others say that activity is moribund, and that those who wish to access those markets will have to pay through the nose to do so. Still, with external corporate debt at such high levels, they may not have a choice.

To see this article in its published form, visit www.asiamoney.com. This article ran with another on Indonesia in the same edition. See it here: http://chriswrightmedia/indonesia-economy-asiamoney-may2009

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