ADB approves US$650 million for Indonesia financial market reforms

The Asian Development Bank (ADB) has approved the first subprogramme of its Financial Market Deepening Program for Indonesia, backed by US$650 million in financing. The bank said the initiative supports efforts to develop capital markets, modernise digital finance and improve conditions for sustainable and transition financing.

The market reforms are expected to improve liquidity, transparency and investor participation. Measures include support for securities lending, liquidity providers and bond market development, as Indonesia seeks to attract investment while reducing reliance on bank financing.

For digital finance, the programme will strengthen the regulatory framework for digital assets, raise cybersecurity standards and improve consumer protection. Its sustainable finance measures will reinforce regulation and market infrastructure, expand the sustainable finance taxonomy, encourage green lending and reduce barriers to issuing sustainable financial instruments.

ADB's Indonesia director Bobur Alimov said in a statement on 19 October 2026 that easier access to financing would help businesses invest, expand and create jobs. He said safe digital financial services would also give people greater opportunities to save.

Indonesia's stock market capitalisation stood at 66.4 per cent of gross domestic product in 2025. The programme builds on earlier ADB support for the country's financial sector and is aligned with its National Medium-Term Development Plan for 2025-2029 and Golden Indonesia 2045 vision.