Komodo Bond, Indonesia’s First Foreign Bonds Foreign Currency in Rupiah Currency

Friday, December 15, 2017
In an effort to find new funding sources to finance infrastructure development, the government through one of the State-Owned Enterprises (SOEs) PT. Jasa Marga issued its first overseas bond in the world with rupiah called Komodo Bond recorded on the London Stock Exchange on Wednesday (13/12/2017)

PT. Jasa Marga, the first Indonesian SOE in the international securities market, issued Rp4 trillion bonds to finance infrastructure development plans in Indonesia.

“This adds to liquidity access. This proves the confidence of international investors have a high interest in investment in Indonesia, “said President Jokowi after attending the OIC’s Extraordinary Summit in Istanbul, Turkey (13/12/2017).

The President hopes that Komodo Bond can attract foreign investors to invest in Indonesia so that it can accelerate infrastructure development and create employment opportunities in Indonesia and introduce rupiah currency to international investors.

“And also open access to new funding sources to finance infrastructure development,” said the President.

In the release of the Deputy for Protocol, Press and Media of the Presidential Secretariat, Bey Machmudin mentioned that the use of the name of Komodo Bond comes from the typical Indonesian animal in East Nusa Tenggara, so it has Indonesian characteristics. The naming of the bonds is modeled on several local currency bonds owned by several countries such as China’s Dim Sum Bond and India’s Masala Bond.

Komodo bond with a period of three years is worth Rp 4 trillion (equivalent to USD295, 7 million). Funds from these bonds will be used by PT. Jasa Marga to access global investors, through the London Stock Exchange, to support infrastructure development plans in Indonesia and accelerate national economic growth.

Investors’ interest in Jasa Marga’s Komodo Bond is very high, as evidenced by the excess demand of investors which reached 4 times the value of bonds offered (oversubscribed).

The launch of the Komodo dragon was attended by SOE Minister Rini Soemarno, Chairman of the Board of Commissioners of Financial Services Authority, Wimboh Santoso, President Director of Jasa Marga, Desi Arryani, President Director of Bank Mandiri, Kartika Wiroatmodjo, President Director of BNI, Achmad Baiquni and President Director of PT PLN Persero), Sofyan Basir. (Kemensetneg Public Relation)




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