Published Fri, May 23, 2025 · 07:44 PM
[JAKARTA] Indonesia is planning to sell bonds denominated in the Chinese yuan and Australian dollar for the first time ever, as the government seeks to diversify its debt portfolio.
The government will “strongly consider” to sell dimsum and kangaroo bonds this year, subject to market conditions, Suminto, head of the finance ministry’s debt management office, told reporters on Friday (May 23).
The move may help Indonesia lower its exposure to volatility in the US dollar, while potentially helping it strengthen financial ties with China – its biggest trading partner. A successful bond issuance in diverse foreign currencies will demonstrate growing investor confidence in Indonesia and its financial system.
It reflects an effort to reduce reliance on traditional funding currencies such as the US dollar and euro, and tap a new pool of investors, said Wee Khoon Chong, senior Apac market strategist at BNY. “Typically, the choice of bond issuance is demand-led.”
Indonesia’s plan comes as governments around the world are exploring ways to diversify away from US dollar bonds as volatility remains elevated in US markets. South Korea issued its first-ever kangaroo debt last year.
Foreign-denominated bonds typically make up less than 20 per cent of the Indonesian government’s debt issuance – primarily denominated in US dollars. The announcement comes just hours after Indonesia priced a 103.2-billion yen, multi-tranche samurai bond deal on Friday. BLOOMBERG
Share with us your feedback on BT’s products and services
