ASIATODAY.ID, JAKARTA — Indonesia’s sovereign investment agency Danantara has successfully raised US$1.5 billion through its inaugural global bond issuance, attracting strong demand from international investors and underscoring continued confidence in Southeast Asia’s largest economy despite ongoing global uncertainties.
Speaking at the Presidential Palace complex in Jakarta on Monday, Investment and Downstreaming Minister and Danantara Chief Executive Officer Rosan Roeslani said the bond offering significantly exceeded initial expectations.
“We originally targeted US$1 billion, but total orders reached approximately US$4.6 billion,” Rosan said.
“Given the strong demand, we increased the issuance size from US$1 billion to US$1.5 billion, divided into five-year and ten-year maturities.”
The successful fundraising followed an extensive international roadshow that took Danantara’s leadership to major financial centers, including Hong Kong, Singapore, Boston, London, and New York.
During the tour, the agency met with 122 global investors to present Indonesia’s investment outlook and Danantara’s long-term strategy.
The transaction also secured what Rosan described as competitive borrowing costs. The five-year bonds were priced at a yield of 5.35 percent, while the ten-year tranche carried a yield of 5.95 percent.
“These are very strong results and provide tangible evidence that international investors continue to have high confidence in Indonesia,” he said.
Danantara raised US$750 million from each tenor, with part of the transaction already completed. The bonds were signed on June 11, and the proceeds are expected to be transferred into Danantara’s accounts on June 18.
Looking ahead, Rosan said the overwhelming investor appetite could pave the way for longer-term debt issuances, potentially extending to maturities of up to 30 years.
“The appetite is very strong because investors see Indonesia’s economic growth as relatively stable,” he said.
“There will always be economic cycles, especially amid geopolitical and geoeconomic challenges, but investors continue to view Indonesia as a promising long-term destination.”
One of the most notable aspects of the bond issuance, according to Rosan, was the dominant participation of investors from the United States—a departure from previous fundraising patterns.
For the five-year bonds, investors from the United States accounted for 38 percent of purchases, followed by 41 percent from Europe and the Middle East and 21 percent from Asia.
Meanwhile, U.S. investors represented 52 percent of demand for the ten-year bonds, compared with 31 percent from Europe and the Middle East and 17 percent from Asia.
The strong reception of Danantara’s debut bond sale is being viewed by Indonesian officials as a significant vote of confidence in the country’s economic prospects and its efforts to attract global capital amid an increasingly volatile international financial environment.
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