INDONESIA —Indonesia is pursuing a broad financial market reform program with support from the Asian Development Bank (ADB), aimed at strengthening capital markets and expanding the financial system’s capacity to mobilize long-term funding. The first subprogram of the Financial Market Deepening Program is backed by US$650 million in ADB financing.
The initiative focuses on improving market efficiency, liquidity, transparency and investor participation. Planned measures include support for securities lending, liquidity providers and bond market development, which are intended to strengthen market infrastructure and create more effective channels for investment and corporate financing.
Digital finance is another central component of the reform agenda. Indonesia will strengthen its regulatory framework for digital assets while improving cybersecurity standards and consumer protection measures. These changes are relevant to financial institutions, fintech companies, investors and other businesses operating across the country’s digital financial ecosystem.
The program also targets sustainable and transition finance through stronger regulations and market infrastructure. Measures include expanding the sustainable finance taxonomy, encouraging green lending and reducing barriers to issuing sustainable finance instruments. This could support greater private-sector capital flows toward environmentally sustainable and transition-related projects.
For Indonesian businesses, deeper capital markets could provide additional financing options as the country seeks to reduce reliance on bank-based funding. Improved bond market infrastructure and broader investor participation may be particularly relevant to companies and sectors requiring substantial long-term capital, including infrastructure, energy and other investment-intensive industries.
For financial institutions and investors, the reforms could affect market participation, digital finance compliance, financial product development and sustainable investment frameworks. The program is aligned with Indonesia’s National Medium-Term Development Plan 2025–2029 and Golden Indonesia Vision 2045, placing the financial reforms within the country’s broader economic development agenda.
ADB is a multilateral development bank supporting sustainable and inclusive economic development across Asia and the Pacific. Its financial-sector programs in Indonesia have included initiatives focused on market development, financial inclusion and strengthening the country’s financial system.
