Danantara Opens Opportunities To Issue Global Bonds, Prioritize US Dollars

Managing Director of Treasury Danantara, Ali Setiawan (center) (Photo: Mery Handayani/VOI)

JAKARTA - The Investment Management Agency (BPI) Daya Anagata Nusantara (Danantara) opens opportunities for bond issuance in the global market as part of funding expansion for foreign currency-denominated investment projects.

"If we want to do a global issuance, and we will do that, through the capital market, it will also be processed by treasury," said Managing Director of Treasury Danantara, Ali Setiawan, in a media briefing in Jakarta, Friday, November 28.

Ali said, the issuance of global bonds is a strategic necessity considering that all sources of funding for Danantara are currently still using rupiah.

"Because of all our funding in the Danantara, all the funding is rupiah. So if suddenly we have another currency project, dollars, we will have a hard time," said Ali.

Therefore, Ali said Danantara plans to issue global bonds in various denominations and prioritize US dollar denominations.

However, said Ali, Danantara also did not rule out the possibility of issuing a global issue with other denominations, such as the Chinese yuan.

"We also study that, but it must be a priority for the US dollar first because it's the most widely used currency. For other currencies such as rent, it's because there is indeed a lot of potential for partnerships with China," said Ali.

Even so, Ali has not disclosed the exact schedule for the issuance of global bonds. He emphasized that throughout 2026, Danantara's focus is to undergo the pre-rating process by international institutions.

What we will definitely do in 2026 is pre-rating the world for the global issue first. We will pre-rated, how much is the rating, later by Fitch, by S&P, Moody's," said Ali.

In addition, Ali will also be waiting for the US treasury yield to drop, so that the price spread goes down.

"So that we can measure, if we enter the market, we estimate how much we achieve yield. Because we want cost of funds not to be too high," said Ali.

In addition, Ali said Danantara also opened up opportunities for the issuance of Patriot Bond phase II. According to Ali, this publication is waiting for the results of the issuance of the first phase Patriot Bond.

As for the first issuance, Danantara is eyeing funds worth US$3.1 billion or around Rp. 50 trillion. However, the results were oversubscribed.

"If for example there is a second (Patriot Bond), for example there is a big interest, we will definitely open again from interest in investing in P Bond," he said.