(May 19): Indonesia started marketing its latest dollar bond offering on Tuesday and flagged that a euro-denominated tranche may follow when London markets open, as the Iran conflict stokes concerns about the nation’s economic vulnerability.
Indonesia has already tapped investors in both markets this year, in addition to the yen and China’s local-currency, raising the equivalent of billions of dollars. The government is marketing five-year and 10-year bonds on Tuesday.
Indonesian assets were hit this week by the global market selloff assets, with the Indonesian rupiah falling to a record low, while local bond yields climbed. Fitch Ratings and Moody’s Ratings both cut their credit rating outlooks on the nation to negative earlier this year.
Fitch cited an erosion of policy “consistency and credibility amid growing centralisation” of decision-making under President Prabowo Subianto.
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