• Home
  • Home
  • Daily Papers
  • Awards / Events
  • GlobalCapital
  • Free Trial
Close

Copying and distributing are prohibited without permission of the publisher.

Watermark
  • Print

Debt Management Office of the Year, East Asia Pacific

Luky_Alfirman_Globalmarkets
By Matthew Thomas
13 Oct 2020

Luky Alfirman, Indonesia Indonesia’s debt management team has taken a calm, considered approach to an unprecedented situation.

No sovereign borrower has been more assured than Indonesia during the coronavirus pandemic. The country gave a textbook demonstration of how to respond to a crisis — showing flexibility, maturity and a keen eye for opportunities.

The most impressive deal across Asia’s capital markets this year may still be the country’s $4.3bn multi-tranche bond in April — a time when markets were overcome with panic about the impact of the coronavirus.

The bond was a landmark for the region’s capital markets, becoming the closest we have seen to a proper Covid response bond from an Asian sovereign. Funding officials in the country did consider going the whole way, emulating some European borrowers that have

officially labelled their bonds as “Covid response” deals. But that option demanded extra time when time was in short supply. Instead, Indonesia stuck with a conventional deal but made it clear that the use of proceeds would be fighting the impact of the pandemic.

That was followed in June by a $2.5bn green sukuk, a format Indonesia has been using since 2018, when it realised combining two niche investor bases could have lasting benefits. The icing on the cake came a month later, when Indonesia sold a ¥100bn ($943m) Samurai bond.

Indonesia’s debt management team certainly had some support. A pledge from Bank Indonesia, the country’s central bank, to buy $40bn of government debt at effectively zero-percent interest rates — a move which officials stress was a one-off ‘burden sharing’ arrangement — was clearly helpful. But the

sovereign’s forays into the international markets had no such help.

Indonesia has long been seen as one of the savviest sovereign borrowers in Asia, standing alongside the Philippines, which has reduced its reliance on offshore funding in recent years, and China, which has finally woken up to the potential of the market. But a look at the country’s offshore bond supply this year should be enough to settle the debate. Indonesia is not just among the most impressive sovereign borrowers in the region; it is the very best.

By Matthew Thomas
13 Oct 2020
  • HOME
  • GLOBALMARKETS
  • Latest news from GlobalMarkets

    1. EM debt pressures build as IMF calls for ‘early’ action on restructuring

      15 Oct 2020
    2. Post-Covid world will demand ‘new more humane’ capitalism

      15 Oct 2020
    3. IADB to roll out hurricane clauses as small state pleas gain traction

      15 Oct 2020
    4. IMF will need Bank’s help to fulfil climate ambition

      15 Oct 2020
    5. Biden victory to boost Asia but China tensions to remain

      15 Oct 2020
  • Most viewed: GlobalMarkets

    1. IMF accused of imposing ‘exactly wrong’ austerity advice for bailouts

  • Print
  • Latest news from GlobalMarkets

    1. EM debt pressures build as IMF calls for ‘early’ action on restructuring

      15 Oct 2020
    2. Post-Covid world will demand ‘new more humane’ capitalism

      15 Oct 2020
    3. IADB to roll out hurricane clauses as small state pleas gain traction

      15 Oct 2020
    4. IMF will need Bank’s help to fulfil climate ambition

      15 Oct 2020
    5. Biden victory to boost Asia but China tensions to remain

      15 Oct 2020
  • Most viewed: GlobalMarkets

    1. IMF accused of imposing ‘exactly wrong’ austerity advice for bailouts

Further reading

  • Crisis Suisse and opportunity

    Comment

    Crisis Suisse and opportunity

  • Deutsche Telekom dials down under

    Private Debt

    Deutsche Telekom dials down under

  • IMF ramps up focus on climate, launches innovative database

    SRI / Green Bonds

    IMF ramps up focus on climate, launches innovative database

  • Bond Comments

    Italy EUR7bn 0.25% Mar 28 tap, EUR5bn 2.15% Mar 72

Global Capital

All material subject to strictly enforced copyright laws. © 2021 Euromoney Institutional Investor PLC group

About Us

  • About us
  • Contact us
  • Modern Slavery Act Transparency Statement

Connect with us

  • LinkedIn
  • @GlobalCapNews

Services

  • Advertise
  • Our partners
  • RSS
  • GlobalCapital Events
  • Events calendar
  • Social community

My Account

  • Renew
  • Subscribe
  • FAQ
  • Feedback
  • Terms and Conditions
  • Privacy Policy
  • Cookies

Quick Links

  • All League Tables
  • Bank Profiles
  • Bond Comments
  • Deals & Deal Pipelines
  • Polls and Awards
  • GlobalCapital Archive
  • Special Reports Archive