Investors Trust Danantara, the People Await Proof

JAKARTA — The government has received good news from global markets. Danantara’s inaugural bonds worth US$1.5 billion were heavily oversubscribed, with investor demand reaching approximately US$4.6 billion. Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) and Head of BPI Danantara Rosan Roeslani described the result as proof that investor confidence in Indonesia remains high. “This is real,” Rosan told reporters during a joint press briefing with Minister of State Secretary Prasetyo Hadi at the Presidential Palace Complex on Monday, 15 June. Yet in the same forum, a question closer to household concerns emerged: how will the government restore the people’s trust? Minister of State Secretary Prasetyo Hadi replied that President Prabowo Subianto has emphasised a number of steps, including deregulation, accelerating downstreaming, industrialisation, and maintaining economic stability. According to Prasetyo, these policies are expected to instil confidence among economic actors and the public. Yield is the return demanded by investors; in other words, it is the cost the bond issuer must pay to obtain funds from the market. The composition of investors was also noteworthy. For the 10-year tenor, US investors were the largest buyers with a 52 per cent share. For the government, this is a positive signal. Amid market pressures, Indonesia is still considered attractive by global investors. But public trust operates on different measures — not yield, not order books. The people judge by the price of staple goods, employment, income, and business certainty. Therefore, Danantara’s success must not stop at being market news. The incoming funds must be safeguarded, the projects must be clear, and the benefits must be visible.