WNAM REPORT: The Indonesian government is preparing to issue its first Kangaroo Bond — a government bond denominated in Australian dollars (AUD) — in August 2025.
Finance Minister Sri Mulyani Indrawati announced that the government is currently conducting meetings with potential investors in Australia to gauge market interest and prepare for the issuance.
During a Financial System Stability Committee (KSSK) press conference here on Monday (July 28), she stated that the final decision will depend on investor feedback and a careful assessment of market conditions.
“If all conditions are favorable, we plan to proceed with the issuance in August 2025,” she remarked.
Since it will be the first bond issuance of this kind, Sri Mulyani has assured that great caution will be exercised during the process. Thus, the nominal value and other details are still being finalized.
The Kangaroo Bond issuance is part of Indonesia’s broader strategy to diversify funding sources and deepen bilateral financial cooperation with Australia.
The initiative follows a meeting between Sri Mulyani and Australian Treasurer Jim Chalmers on the sidelines of the G20 Finance Ministers and Central Bank Governors Meeting in South Africa in April 2025.
The two ministers agreed to enhance bilateral financial collaboration, including by introducing the Kangaroo Bond as a new funding channel for Indonesia.
Indonesia is also exploring the possibility of issuing a Dim Sum Bond, a yuan-denominated bond.
Sri Mulyani stated that the bond will be issued in the second half of 2025, in line with this year’s government securities issuance plan and strategy.
However, she emphasized that the plan is still under evaluation and would depend on state revenue and expenditures as well as fiscal developments in the third and fourth quarters of the year.
“We will thoroughly assess the plan in this second semester (of the year),” she remarked.
