Updated
Updated · Bloomberg · Jun 5
Danantara Plans 3% Bond Sale as Investors Shun Indonesia
Updated
Updated · Bloomberg · Jun 5

Danantara Plans 3% Bond Sale as Investors Shun Indonesia

2 articles · Updated · Bloomberg · Jun 5

Summary

  • Danantara is preparing a new local-currency bond sale with a 3% coupon, according to a document seen by Bloomberg, though the fundraising remains at a preliminary stage.
  • The planned yield sits below market rates even as global investors rapidly lose confidence in Indonesia’s markets, creating a tougher backdrop for any new issuance.
  • The offering would be open to both local and foreign investors, signaling an effort to broaden demand despite the recent pullback from Indonesian assets.
  • The deal echoes fundraising last year and will test whether Indonesia’s sovereign wealth fund can still attract buyers as sentiment toward the country deteriorates.

Insights

With markets in freefall, who is buying Indonesia's low-yield 'patriotic' bonds, and what are they getting in return?
Is Indonesia's new wealth fund a bold move for economic sovereignty or a high-stakes gamble risking global isolation?
Can last-ditch market reforms save Indonesia from a humiliating downgrade to 'frontier' market status by MSCI?