Indonesia advances financial market reform
Rank 13 | Finance and innovation | Indonesia | SDGs 8, 9, 13
Source publication: 1 October 2026. Clock time not stated by publisher. Evidence status: Policy financing approved; investment outcomes pending.
AI-generated representative illustration | modern architectural photographic double exposure. Credit: Development Connects | Kallol Saha.
The Asian Development Bank approved the first subprogram of Indonesia's Financial Market Deepening Program on 1 October, backed by $650 million in financing. The package supports capital-market development, digital-finance safeguards and rules intended to draw private investment into sustainable and transition projects. Approval of policy financing does not itself show that new green investment has occurred.
The reforms cover securities lending, bond-market development and measures to improve liquidity and transparency. ADB also cites stronger digital-asset regulation, cybersecurity and consumer protection. On sustainable finance, the programme is designed to expand the taxonomy and reduce barriers to issuing relevant instruments. The bank says Indonesia's stock market equalled 66.4% of gross domestic product in 2025, a baseline that helps explain the focus on domestic capital markets.
Case detail
The first subprogram supports three connected parts of the financial system: more efficient markets, safer digital services and an environment for sustainable and transition finance. Securities lending, liquidity providers and bond-market development are intended to broaden market activity. Digital-asset regulation and cybersecurity standards address the safeguards needed as new services expand.
Sustainable-finance rules, including the taxonomy, are intended to help identify eligible activities and support relevant lending and instruments. ADB links the operation to Indonesia's 2025-2029 medium-term development plan and its longer-term development vision. This is a policy-financing mechanism, with changes to regulation and market infrastructure as the intervention. The release provides a baseline and a reform design, but no measured total of new private sustainable investment resulting from the approval.
Evidence and delivery status
The $650 million is financing for the reform subprogram, rather than private money already invested in green projects. The 66.4% stock-market-to-GDP figure describes a 2025 baseline. The release announces changes to the enabling environment; it does not demonstrate the resulting volume or distribution of sustainable investment.
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