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London's Komodo bond power Indonesian infrastructure
Both bonds attracted global investor support and were more than two and half times oversubscribed, a clear demonstration of strong investor demand.
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State-owned Enterprises Minister Rini Soemarno (center), PT Jasa Marga executives and officials of London Stock Exchange pose after Jasa Marga listed its Komodo Bonds on the bourse in Wednesday. (Courtesy of/State-owned Enterprises Ministry)
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n recent months Indonesia has been celebrating a series of firsts: from the first Indonesia pavilion at the World Economic Forum in Davos; to being rated, for the first time, investment grade by all three major rating agencies and launching the world’s first ever Komodo bond by a state-owned enterprise.
This is testament to President Joko “Jokowi” Widodo’s commitment to building a more globally competitive and international economy.
Indonesia is one of the fastest growing economies in the G20, forecast to expand by 5.4 percent in 2018, the largest member of ASEAN and becoming an increasingly attractive destination for foreign direct investment.
At the center of President Jokowi’s vision is infrastructure development. A landmark program is in place encompassing vital infrastructure such as seaports, toll roads, airports and power plants.
The President has said “connectivity between Indonesia’s 17,000 islands and 34 provinces is essential to fostering growth that is Indonesia-centric rather than Java-centric.”
A core enabler of this growth is access to the international capital markets. The Indonesian government recognizes that private sector funding can play a significant role in bridging the gap between government spending and the country’s infrastructure ambitions.
Mandiri Group, particularly its largest lender Bank Mandiri and its securities unit Mandiri Sekuritas, is proud to spearhead this reform. Their newest market investment instruments, Global Indonesia Rupiah (IDR) Bonds, are opening up the capital markets to global investors.
