Indonesia Raises A$800 Million in Debut Kangaroo Bond Sale

Indonesia successfully raised A$800 million (US$522 million) through its first Australian dollar-denominated Kangaroo bond, with strong demand reaching about ten times the issuance size. The issuance included five-year and 10-year notes and was managed by UBS Group AG and Standard Chartered Bank among others. This move is part of Indonesia’s strategy to diversify its funding sources and strengthen financial ties with Australia, following discussions between Indonesia's Finance Minister and the Australian Treasurer earlier in 2025. The Kangaroo bond sale attracted emerging-market bond buyers who see the Australian dollar as a stable currency amid regional tariff risks. Indonesia previously issued a multi-tranche samurai bond and plans to issue offshore yuan-denominated dim sum bonds later this year, indicating a broader effort to access diverse international debt markets. The strong investor interest also reflects growing confidence in Indonesia’s economic growth and financial stability.