Before Buying Danantara Bonds, Foreign Investors Pose Critical Questions
JAKARTA — Behind Danantara’s success in raising US$1.5 billion from global markets lies a rigorous testing process by foreign investors. Before purchasing the bonds, they first posed a series of critical questions regarding Danantara’s policies, governance, and investment direction.
Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) and concurrently Head of BPI Danantara, Rosan Roeslani, stated that the roadshow was conducted from 3 June to Hong Kong, Singapore, Boston, London, and New York. During these meetings, Danantara explained its investment policies and institutional plans to investors.
“The Q&A was indeed intense, very intense,” Rosan said while briefing journalists alongside Minister of State Secretary Prasetyo Hadi at the Presidential Palace Complex on Monday, 15 June.
According to Rosan, some investors had previously harboured doubts about the Indonesian economy and the government’s policy direction. However, after receiving direct explanations, investor perception reportedly began to shift positively.
Rosan noted that Danantara met with approximately 122 investors. Following the roadshow, Danantara conducted a book-building process to gauge purchase interest from prospective investors.
The bonds were divided into two tenors: US$750 million each for five-year and ten-year maturities. The five-year tenor carries a yield of 5.35 percent, while the ten-year tenor offers 5.95 percent. Yield represents the return demanded by investors when purchasing debt securities; if risk is perceived as high, the requested yield typically rises accordingly.
Rosan said the results demonstrate that Danantara’s credibility has been accepted by investors. He also emphasised that openness, transparency, governance, and accountability were maintained throughout communications with the market.
According to Rosan, the positive investor response was evident from the high demand for the bonds, which he described as proof that investor confidence in Indonesia remains strong.