FX.co ★ Indonesia Plans First Kangaroo Bond to Diversify Funding

Indonesia is in the process of launching its first Kangaroo bond, which is government debt issued in Australian dollars, scheduled for August. Finance Minister Sri Mulyani Indrawati announced that the government is engaging with potential investors in Australia to assess interest levels. The final decision on the bond issuance will be influenced by investor feedback and prevailing market conditions. According to Bloomberg News, citing UBS Group AG as one of the joint lead managers, the proposed offering might comprise five- and ten-year notes. This initiative is part of Indonesia's larger strategy to diversify its funding sources and strengthen financial ties with Australia. This plan follows a meeting between Sri Mulyani and Australian Treasurer Jim Chalmers at the G20 Finance Ministers and Central Bank Governors Meeting held in South Africa in April 2025.