Indonesia’s Bonds Hit Hardest in Asia as State Debt Risks Grow

Indonesian state-run power utility’s dollar bonds have suffered the most in Asia over the past two weeks due to rising concerns about the nation’s debt. This has pressured local borrowers, who face $6 billion in maturities through the end of 2025.

Six of the 10 biggest decliners in the Asia ex-Japan dollar bond market in that period were notes from PT Perusahaan Listrik Negara, according to prices compiled by Bloomberg. Yield premiums on some notes of other state firms PT Pertamina and PT Hutama Karya also rose to a three-month high.

The average spreads of corporate and quasi-sovereign notes have ...