Indonesian Political, Business & Finance News

Global Investors Eye Golden Opportunities in Indonesia, Here's the Proof!

| Source: CNBC Translated from Indonesian | Investment
Global Investors Eye Golden Opportunities in Indonesia, Here's the Proof!
Image: CNBC

The Danantara Investment Authority (BPI Danantara) has stated that foreign investor interest in Indonesia remains strong, evidenced by the positive global market response to its US$1.5 billion bond issuance. Chief Executive Officer Rosan Roeslani said the global bond offering was oversubscribed by three times, with peak orders reaching US$4.6 billion, reflecting high global investor appetite for Danantara’s bonds. Rosan noted the findings followed a global bond roadshow to several countries, including Hong Kong, the United Kingdom, Singapore, and the United States. “This trust is the result of our solid economic fundamentals. Mr Tony Blair conveyed directly that investors see a golden opportunity in Indonesia. Support from global figures like him validates our economic policies, and they are not just coming for the short term but are committed for the long term,” Rosan said in a written statement on Wednesday. Former British Prime Minister Tony Blair assessed that international business players still have confidence in Indonesia’s economic stability. During his visit to Danantara on 7 July, Tony Blair specifically conveyed investor enthusiasm regarding potential investment collaboration in Indonesia. The meeting between Danantara executives and the former UK prime minister served as tangible support and validation of Indonesia’s efforts to create a conducive investment climate. Rosan explained that the global bond was divided into two tenors. The five-year notes, with a yield of 5.35%, raised US$750 million, while the ten-year notes, with a yield of 5.95%, also raised US$750 million. The successful issuance was highlighted by foreign media, including Bloomberg, which titled its report ‘Danantara Sells Dollar Bond, a Win for Prabowo After Rout’. Rosan also opened the possibility of issuing more global bonds, including a 30-year tenor, given the high investor interest in Danantara’s instruments. He added that foreign investors view Indonesia’s economic growth as relatively stable. Rosan emphasised that the success of the global bond issuance refutes claims that Danantara’s instruments would not sell, noting that the bond yields were also lower than market expectations. “This is a very, very good result, and it proves that investor confidence in Indonesia is high, and this is proven, and this is real,” he concluded.

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