Publication

Executive Summary

EXECUTIVE SUMMARY         

In 2025, the performance of debt instruments and issuing companies generally remained relatively stable. The default rate for companies remained low and improved compared to 2024. Throughout 2025, there was only 1 (one) company from the construction sector that experienced default, namely PT Wijaya Karya (Persero) Tbk (WIKA). The number of companies experiencing default decreased from the previous year, which recorded 3 (three) companies. However, in terms of the value of debt instruments, there was an increase in the total value of instruments that experienced default, reaching IDR7.54 trillion. Nevertheless, the impact on the aggregate default rate remained relatively limited, in line with the high value of new corporate bond issuances in 2025. The default event on WIKA instruments also occurred at a relatively lower initial rating, namely A- (single-A minus) (three notches above the investment grade threshold), with the previous year’s monitoring indicating a rating of BB- (non-investment grade).

The cumulative default rate of issuing companies rated and published by PEFINDO declined to 7.73% for the period 2007–2025, while the default rate of debt instruments remained contained at 1.59%. From a sectoral perspective, the default rate of debt instruments and the default rate of issuing companies in the non-financial institution (non-FIN) sector were 3.75% and 10.60%, respectively. Meanwhile, in the financial institution (FIN) sector, the figures were significantly lower at 0.07% and 2.44%.

Defaults have only occurred among lower-rated entities. The AAA (triple-A) category maintained a 0.00