Indonesia Set for Historic Kangaroo Bond Launch in August.
The move is a strategic step to diversify funding sources and bolster economic ties with Australia, signaling growing investor confidence in the Southeast Asian nation.
Jakarta, Indonesia – Indonesia is poised to make its debut in the Australian debt market with the launch of its first-ever “Kangaroo bond” this August. The government debt, which will be issued in Australian dollars, marks a significant milestone in the nation’s strategy to diversify its funding sources and deepen financial cooperation with Australia.
Finance Minister Sri Mulyani Indrawati confirmed the government’s plans, stating that the final decision to proceed will be based on feedback from potential investors and prevailing market conditions. “If all conditions are favorable, we plan to proceed with the issuance in August 2025,” she remarked at a recent press conference.
Indonesian finance ministry officials are currently in Australia to meet with potential investors and gauge their interest in the bond offering. According to reports, the potential offering may include five and ten-year notes.
This strategic financial move follows a productive meeting between Sri Mulyani and Australian Treasurer Jim Chalmers at the G20 Finance Ministers and Central Bank Governors Meeting in South Africa in April 2025. The issuance is also timely, coinciding with the 75th anniversary of diplomatic relations between the two nations and aligning with the goals of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).
The launch of the Kangaroo bond is viewed as a significant step in strengthening the economic relationship between the two neighboring countries. It is expected to provide Australian investors with new opportunities to participate in Indonesia’s robust economic growth while allowing Indonesia to tap into a new pool of investors and reduce its reliance on U.S. dollar-denominated debt.
This initiative is part of a broader trend of emerging market issuers turning to the Kangaroo bond market, which has seen significant growth. Analysts see this as a positive development for Indonesia, reflecting increasing confidence in its economic management and reform agenda.The Australian Prudential Regulation Authority (APRA) has also commended Indonesia’s efforts to diversify its investor base.
While the government is proceeding with caution, the planned issuance of the Kangaroo bond is a clear signal of Indonesia’s proactive approach to global financial markets and its commitment to fostering a strong and stable economic partnership with Australia.
