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Indonesia Set to Raise $4.5 Billion as Fiscal Concerns Grow

Prima Wirayani, Harry Suhartono
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Indonesia is raising $4.5 billion through offshore bonds, marking its second major debt sale in months amid growing fiscal concerns in Southeast Asia’s largest economy. The government issued 9.25 billion yuan ($1.3 billion) in yuan-denominated bonds, its second such offering in four months, testing global investor appetite for emerging-market debt. A €2.7 billion ($3.2 billion) eurobond sale drew €9.2 billion in orders, signaling strong demand despite fiscal risks, according to sources familiar with the transaction. The move reflects Jakarta’s push to diversify funding sources as budget deficits widen, leveraging international markets to mitigate domestic economic pressures. Analysts view the oversubscribed euro deal as a vote of confidence, though lingering fiscal vulnerabilities may challenge long-term investor sentiment.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Indonesia is selling its second round of offshore bonds in months, testing global investor confidence amid concerns over fiscal woes in Southeast Asia’s largest economy.The government priced 9.25 billion yuan Bloomberg Terminal($1.3 billion) in debt across three parts, its second offshore yuan deal in four months. It is also selling €2.7 billionBloomberg Terminal ($3.2 billion) of euro notes, according to people familiar with the matter. The latter attracted €9.2 billion of orders excluding lead manager interest, one of the people said.

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