Analyst says Danantara's maiden bond issuance proves investor confidence

Public policy analyst Feiral Rizky Batubara believes the strong investor appetite for Danantara Investment Management’s (DIM) maiden international bond signals that the global market still has confidence in Danantara’s credibility. The market’s response to the dollar-denominated instrument is reflected not only in the issuance value of USD 1.5 billion, but also in the substantial demand during the offering process. “The strong demand was evident from the transaction, which was initially targeted at USD 1 billion but recorded a peak order book of around USD 4.6 billion and was ultimately increased to USD 1.5 billion,” Feiral said in Jakarta on Wednesday. He noted that the high demand shows the bond is genuinely sought after by the market, with additional interest coming from investors in the United States, Europe, and the Middle East. According to him, the combination of large demand and a competitive yield indicates the market is not merely responding positively, but also deems the instrument worthy of inclusion in global investor portfolios. “Issuing a maiden bond in the international market is a test of credibility, especially when conducted amid challenging global conditions. DIM’s success in raising USD 1.5 billion demonstrates that Danantara as an institution has prospects, sound institutional support, and a strategic role in the national development agenda,” Feiral said. He assessed that amid global geopolitical uncertainty, investors tend to be more selective in placing funds, particularly in developing countries perceived to carry higher risk. Therefore, the substantial demand for DIM’s bond shows the market is giving a positive signal regarding the direction of Danantara’s investment management. Besides being supported by high market demand, Feiral said the success of DIM’s first international bond issuance was also underpinned by investment-grade ratings, namely BBB from S&P Global and Baa2 from Moody’s. These ratings place DIM’s bond in the investment-grade category with moderate risk. Investment-grade status is one of the key factors considered by institutional investors when making investment decisions. “The Baa2 and BBB ratings are like a ticket to enter the global market. For many international investors, especially fund managers, insurance companies, and pension fund managers, ratings are the primary basis for assessing risk, determining portfolio allocation, and evaluating whether an instrument is worth holding,” he said. Nevertheless, this recognition also brings consequences in the form of heightened investor expectations regarding governance quality, transparency, and risk management practices. “This global investor confidence must be understood as a mandate, not merely an achievement. The funds raised must be managed in a disciplined, transparent, and productive manner so as to generate real economic impact for Indonesia,” Feiral stated. He expressed hope that the proceeds from the bond issuance would be directed towards strategic sectors with large multiplier effects on the economy, such as industrial downstreaming, energy, agriculture, infrastructure, and projects capable of creating jobs and increasing national value-added. As previously reported, on 12 June Danantara Indonesia, through DIM, announced the successful issuance of its maiden international bond worth USD 1.5 billion. The bond was issued on 11 June 2026 with a peak order book reaching USD 4.6 billion, reflecting strong interest from global investors in the instrument offered.