Government Issues Global Sukuk Of 2.2 Billion US Dollars

JAKARTA - The government of the Republic of Indonesia has succeeded in conducting global Sukuk transactions worth US$2.2 billion consisting of US$1.1 billion with a tenor of 5 years, and US$1 billion with a tenor of 10 years (Green Sukuk) in Reg S/144A Trust Certificates format, which will mature in 2030 and 2035, respectively.

This transaction is the third publication by the Government of the Republic of Indonesia in the global financial market in 2025 after two previous issuances in USD, EUR and JPY currencies.

This also shows investor interest that remains high in financial instruments issued by the Government of the Republic of Indonesia in various currencies.

As evidence of the Government's long-term dedication and commitment to green and sustainable financing, and as part of efforts to mitigate and adapt climate change, the 10-year tenor is a green series with an underlying in the form of a green asset of the Government of the Republic of Indonesia.

This Green Sukuk issuance is based on the Sustainable Government Securities Framework which refers to international standards in accordance with the Second Party Opinion by Sustainable Fitch. Thus, since it was first published in 2018, the Government has published a Global Green Sukuk total of 7.7 billion US dollars.

The details are 1.25 billion US dollars (2018), 750 million US dollars (2019), 750 million US dollars (2020), 750 million US dollars (2021), 1.5 billion US dollars (2022), 1 billion US dollars (2023), 600 million US dollars (2024) and 1.1 billion US dollars (2025).

Sukuk Global will be issued by the Government of the Republic of Indonesia through the SBSN Indonesia III Publishing Company ("PPSI-III"), a legal entity established by the Government of the Republic of Indonesia specifically to issue State Sharia Securities in foreign currencies in the international market.

This Global Sukuk uses the Wakalah contract structure and has obtained sharia opinions from the National Sharia Council of the Indonesian Ulema Council, as well as Khalij (UK) Limited, Sharia Advisor of Deutsche Bank AG, Singapore Branch, The Internal Sharia Supervisory Committee (ISSC) of Dubai Islamic Bank PSJC, the HSBC Global Shariah Supervisory Committee, and the Sharia Advisor of PT Mandiri Sekuritas.

Taking advantage of constructive market conditions and potential market uncertainty in the future, the government announced the opening of transactions on July 16, 2025. This offer attracted strong investor interest from the start with an orderbook in the first hour and the joint orderbook reached a peak demand of 7 billion US dollars.

This transaction is in line with the government's strategy to finance the state budget in 2025. The success of this transaction also reflects the high interest and trust of various global investors in Indonesia's economic fundamentals and the credibility and performance of the state budget managed by the Indonesian government.

The Global Sukuk Setelment will be held on July 23, 2025, and will be listed on the Singapore Exchange Exchange Securities Trading Limited and NASDAQ Dubai. Each tenor will be rated Baa2 by Moody's Investor Service, BBB by S&P Global Ratings Services and BBB by Fitch Ratings.

BofaA Securities, Deutsche Bank, Dubai Islamic Bank, HSBC and Mandiri Securities act as Joint Lead Managers and Joint Bookrunners. PT BRI Danareksa Sekuritas and PT Trimegah Sekuritas Indonesia Tbk acted as Co-Manager for this transaction.