On one of the last trading days of 2014, Indonesia’s rupiah exchange rate is moving sideways. According to the Bloomberg Dollar Index, the currency of Southeast Asia’s largest economy had depreciated 0.04 percent against the US dollar by 11:15 am local Jakarta time. Last week, the rupiah had nearly touched IDR 13,000 per US dollar, its weakest level since the Asian Financial Crisis in the late 1990s, amid severe volatility on global currency markets triggered by bullish US dollar momentum and developments in Russia and China.

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The government of Indonesia announced that it plans to sell US dollar, euro and yen-denominated bonds as well as global sukuk (Islamic bonds) in 2015. Robert Pakpahan, Director General at the Debt Management Office within the Finance Ministry, said that the government targets to issue IDR 431 trillion (USD $35.2 billion) worth of bonds next year, of which USD $7-8 billion will be offered to global investors. Pakpahan added that the Indonesian government will not offer saving bonds next year.

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The Indonesian government has mandated Citigroup, HSBC and the Standard Chartered Bank to arrange the issuance of US dollar-denominated sovereign bonds in January 2015. The government also considers to issue euro-denominated bonds next year. Previously it had been reported that the Indonesian government plans to issue samurai bonds and global sukuk (Islamic bonds) in the first quarter of 2015 (as this is considered a relatively stable period) before the US Federal Reserve hikes its key interest rate.

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On Monday (20/10), Indonesia raised IDR 21.2 trillion (about USD $1.8 billion) from the sale of rupiah-denominated retail bonds (Obligasi Negara Ritel Indonesia, abbreviated ORI). This is not only the country’s largest ORI-bond sale ever, but also the largest bond sale in 2014 so far. ORI, which is usually issued once per year, is a bond that is issued specifically to Indonesian retail investors/individuals. The ORI series ORI011 was offered in the period 1-16 October 2014 with a coupon rate of 8.5 percent and a tenor of three years.

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Indonesian stocks, bonds and the rupiah exchange rate performed well ahead of - and during - the inauguration of Joko Widodo (Jokowi) as Indonesia’s seventh President on Monday morning (20 October 2014). At 10:45 am local Jakarta time, when Jokowi was making his speech in front of the People's Consultative Assembly (MPR), the Jakarta Composite Index had surged 1.36 percent to 5,097.25 points, while the rupiah had appreciated 0.78 percent to IDR 12,015 per US dollar according to the Bloomberg Dollar Index.

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The Finance Ministry of Indonesia announced that the government sold IDR 12 trillion (roughly USD $1 billion) worth of conventional bonds on Tuesday (14/10), far above the indicative target of IDR 8 trillion (USD $667 million). High demand shows that investors have confidence in the debt markets of Southeast Asia’s largest economy. Previously, it had been reported that proceeds of the bonds will be used to finance the country’s budget deficit in 2014. Six series of bonds, with maturities ranging between 2015 and 2044, were offered.

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The government of Indonesia eyes to raise up to IDR 8 trillion (USD $667 million) in a bond auction set for Tuesday (14/10). The proceeds of this bond issuance will be used to finance the country’s state budget deficit in 2014. The Finance Ministry said that the Indonesian government will offer six series of bonds, with maturities ranging between 2015 and 2044. For analysts this issuance is an important test to measure investors’ confidence (particularly foreign investors) in Indonesia’s debt markets.

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The official foreign exchange reserve assets of Indonesia’s central bank (Bank Indonesia) at end September 2014 were unchanged (from the preceding month) at USD $111.2 billion. Based on a Bank Indonesia statement, the reserves were under pressure due to an increase in foreign exchange demand (for government foreign debt payments and foreign exchange intervention in order to stabilize the Indonesian rupiah exchange rate), but supported by a global Islamic bonds issuance, oil & gas export revenue and growth of bank forex deposits.

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What were the important corporate news headlines from Indonesia on Friday 15 August 2014? Below Indonesia Investments presents the daily market roundup. This includes the following companies and topics: Indomarco Prismatama, Telekomunikasi Indonesia, Pan Brothers, Archipelago International, bonds auction, RPX Group, Mayora Indah, the Titab Dam project in Bali, Intiland Development, Agung Podomoro Land, Matahari Putra Prima, Berau Coal Energy, and Citra Marga Nusahpala Persada.

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The central bank of Indonesia (Bank Indonesia) announced today (08/08) that the country’s foreign exchange reserves increased to USD $110.5 billion at the end of July 2014 (from USD $107.7 billion at the end of the previous month). Bank Indonesia said that the rising reserves were mainly due to receipts from the Euro bonds issued by the Indonesian government and foreign exchange earnings from oil and gas exports. In addition, buoyant foreign capital inflows also had a positive impact on the accumulation of the official reserve assets.

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When speaking with Indonesians about the performance of the Indonesian government under the leadership of President Joko Widodo, high government debt is usually mentioned as a key source of concern (especially in case the conversation partner is not supportive of the Widodo administration).

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Indonesia's global rupiah-denominated government bonds will enter the Bloomberg Barclay's Global Aggregate Index per May 2018. On Wednesday (21/02) Bloomberg announced that Indonesia's global rupiah bonds meet all criteria to become a member of the Global Aggregate Index. This decision shows the degree of rising foreign confidence in Indonesian bonds, hence in the Indonesian rupiah and the Indonesian economy as a whole.

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In the first two weeks of February 2018 foreign investors aggressively sold rupiah-denominated government bonds (in Indonesian: Surat Berharga Negara, or SBN) in the secondary market. Up to 14 February 2018, foreign investors sold IDR 18.69 trillion (approx. USD $1.4 billion) worth of government bonds in February.

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Earlier this week Indonesian state-controlled construction company Wijaya Karya listed its 'komodo bonds' on the London Stock Exchange in the United Kingdom, an event that was witnessed by Indonesian Finance Minister Sri Mulyani Indrawati. But Wijaya Karya was not the first company to issue komodo bonds. On 13 December 2017 toll road company Jasa Marga sold IDR 4 trillion (approx. USD $298 million) in three-year bonds (priced at 7.5 percent).

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Indonesia-based shipping company Soechi Lines set aside between USD $30 million and USD $50 million to acquire a tanker in 2018. Paula Marlina, Corporate Secretary at Soechi Lines, said the exact type of tanker depends on incoming customer orders. Traditionally, the shipping company acquires a certain type of tanker when it receives plenty of demand for certain tanker services.

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Construction company Wijaya Karya (Wika) is conducting a roadshow for its rupiah-denominated global bonds (to be listed on the London Stock Exchange). Wika is following the example of state-controlled toll road operator Jasa Marga that listed its rupiah-denominated global bonds (also known as "komodo bonds") in London on 13 December 2017.

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The offering period of the Indonesian central government's latest series of (conventional) Indonesian Retail Bonds (in Indonesian: Obligasi Ritel Indonesia, or ORI) is almost over (it closes on Thursday, 19 October 2017). Contrary to our earlier report, demand for the ORI014 series seems not as strong as initially expected.

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Between 29 September and 19 October 2017, the Indonesian government offers its new series of (conventional) Indonesian Retail Bonds (in Indonesian: Obligasi Ritel Indonesia, or ORI) to Indonesian retail investors. Since 2006 the Indonesian government has been issuing ORI bonds, at least once per year, to finance the government's state budget.

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Two state-controlled companies are planning to issue global rupiah-denominated bonds (often called nasi goreng bonds). Construction company Wijaya Karya, which is listed on the Indonesia Stock Exchange, plans to issue up to USD $500 million of nasi goreng bonds in the second half of 2017. Besides the nasi goreng bonds, the company also plans to sell up to IDR 5 trillion of rupiah-denominated bonds on the domestic market.

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Indonesian state-controlled toll road operator - yet listed on the Indonesia Stock Exchange - Jasa Marga considers to issue rupiah-denominated global bonds as an alternative source to seek funds for investment in toll road infrastructure development. Donny Arsal, Finance Director of Jasa Marga, said the company needs IDR 7 trillion (approx. USD $526 million) for investment in 2017. These funds should be collected through bonds, asset securitization, and bank loans.

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