Danantara, Indonesia’s
sovereign wealth fund, is preparing to test investor appetite through a
potential US dollar-denominated bond issuance, appointing several major banks
to conduct investor roadshows across Asia, Europe, and the United States.
Established by President Prabowo Subianto, the fund manages approximately US$1
trillion in assets and plays a key role in financing strategic national
projects, including serving as the central export channel for key commodities
such as coal, palm oil, and ferroalloys. Proceeds from the bond sale will be
used for general corporate purposes, including investments and refinancing
existing debt, while the Indonesian government will not provide a guarantee for
the notes.
The planned issuance
comes amid rising investor concerns over the government's economic policies
after both Moody’s and Fitch Ratings revised Indonesia’s credit outlook to
negative. Danantara aims to generate an annual return on assets (ROA) of at
least 5%, equivalent to around US$50 billion based on its estimated asset base.
The proposed bond sale is therefore seen as an important test of international
investor confidence, although the appointment of lead managers does not
guarantee that the transaction will ultimately proceed.Click!
July 31, 2026
