Indonesia’s sovereign wealth fund Danantara launched its debut global bond sale in US dollars on June 11, targeting about $1 billion split evenly between five- and 10-year maturities to test investor demand amid declining confidence in the Indonesian economy [1, 2, 3, 4, 5].
By the Asian afternoon of June 11, investor bids surpassed $1.5 billion, prompting Danantara to increase the deal size to $1.5 billion [5, 6]. The fund sold $750 million in five-year notes at a yield of 5.35% and $750 million in 10-year notes at 5.95% yield [6]. The bonds are scheduled to be issued under Danantara’s existing $5 billion global medium-term note program on June 18 [6].
Proceeds from the bond sale will support general corporate purposes, including investments and refinancing existing debt [5, 6]. Danantara also plans to issue local currency bonds with coupons below current market rates [1, 2, 3, 4].
Established in February 2025 by President Prabowo Subianto, Danantara reports directly to him and has become central to his interventionist policies which include centralizing commodity exports under its management, announced last month [1, 2, 3, 4, 5, 6]. These policies have unsettled investors, contributing to a drop in confidence in Indonesia’s markets during 2026. Billions of dollars have flowed out of Indonesian stocks and the rupiah currency weakened to record lows, forcing Bank Indonesia to raise its benchmark interest rate by 25 basis points to 5.5% on June 6 to support the currency [1, 2, 3, 4, 5, 6].
Credit rating agencies Fitch and Moody’s revised Indonesia’s sovereign outlook to negative this year, citing policy uncertainty and governance concerns related to these changes [1, 2, 3, 4].
Danantara’s bond issuance follows these economic headwinds as the fund seeks to establish its credibility in global capital markets. The final pricing indicates investors demanded a premium reflecting perceived risks.
The bond issuance is set to settle and bonds formally issued on June 18 under Danantara’s medium-term note program [6].
