Jakarta. Investor confidence in Indonesian financial assets is showing signs of strengthening, with strong demand for recent international bond offerings by state-backed institutions pointing to continued foreign appetite for Indonesian risk.

Danantara Investment Management’s, the investment arm of sovereign wealth fund Danantara, debut global bond sale of $1.5 billion in June drew $4.6 billion in orders, nearly three times the amount offered, Citi Indonesia CEO Batara Sianturi said Thursday.

“We’re seeing very good results. Demand reached $4.4 billion out of the $1.5 billion issued,” Batara said during a presentation on Citi Indonesia’s financial performance. He said the strong demand reflected continued international interest in Indonesia and Danantara.

The Danantara bonds were split into two $750 million tranches, with five-year notes yielding 5.35% and 10-year notes yielding 5.95%. Proceeds are being used to finance strategic projects, including renewable energy and waste-to-energy plants.

Investor demand has also been strong for PLN’s $1.5 billion global bond, issued in February. The offering marked the state electricity company’s return to the US dollar bond market for the first time since 2020.

PLN issued $500 million of five-year notes with a 4.75% coupon and $1 billion of 10-year notes with a 5.45% coupon. The proceeds are being used to support renewable power infrastructure and expand electricity transmission and distribution networks.

Citi also arranged a $1 billion, three-year syndicated loan for Indonesian borrowers. Batara said Citi’s global network, spanning 90 countries, helped connect Indonesian issuers with investors across North America, Europe and Asia.

The improving investor sentiment comes as Indonesia’s macroeconomic outlook is expected to provide additional support. Citi Indonesia Chief Economist Helmi Arman expects the current account deficit to narrow to around 1.5% of GDP in the second half of 2026, helped by more stable global oil prices, while the fiscal deficit is expected to remain below 3% of GDP.

The combination could ease pressure on the rupiah and make Indonesian government bonds and other rupiah-denominated assets more attractive to foreign investors, he said.

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