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Jakarta Post

Global bonds spike in popularity amid uncertainty

  • Mardika Parama

    Jakarta

Jakarta   /   Mon, July 27 2020   /  01:00 am
An officer is arranging US dollars in one of the foreign currency exchange outlets in Jakarta, on Thursday March 19. 2020. Based on the Bank Indonesia Jakarta Interbank Spot Dollar Rate (JISDOR) reference rate data up to 18:00 WIB the exchange rate of the rupiah against the US dollar weakened to the position of Rp 15,712 per US dollar due to negative sentiment of the COVID-19 pandemic.(Antara/Indrianto Eko Suwarso)

The popularity of global bonds issued by the Indonesian government and corporations has spiked as both investors and issuers seek to limit foreign currency risks and improve liquidity amid market uncertainty, according to securities company Mandiri Sekuritas. Mandiri Sekuritas, a subsidiary of state-owned Bank Mandiri, has seen its revenue from the global bonds business increase 41 percent year-on-year (yoy) in the first half as the government was actively issuing US dollars bonds. “Investors consider Indonesia’s dollar-denominated bonds as premium ones,” Mandiri Sekuritas president director Dannif Danusaputro said during a press conference on Thursday. The government has issued Rp 630.5 trillion (US$43.1 billion) worth of sovereign debt papers (SBN) as of the end of June, including $4.3 billion from a three-tranche US dollar-denominated bond in April and $2.5 ...