For the first time, the Indonesian government has issued Government Securities (SUN) denominated in Australian Dollars (AUD) through the Australian Medium-Term Notes (AMTN) scheme, commonly known as the Kangaroo Bond. The total issuance reached A$ 800 million, equivalent to approximately Rp 8.5 trillion.

This move marks a new milestone in the country’s financing strategy while expanding its international investor base, particularly in the Australian market.

Bond Issuance Details
The Kangaroo Bond issuance is divided into two series:

• RIAUD0830: 5-year tenor, valued at A$ 500 million, coupon 4.40%, final yield 4.427%.

• RIAUD0835: 10-year tenor, valued at A$ 300 million, coupon 5.30%, final yield 5.380%.

The initial offering on August 7, 2025, was met with overwhelming demand, with the order book reaching A$ 8 billion—ten times the initial issuance target.

Market Response and Yield Setting
Strong interest from both global and Australian domestic investors allowed the government to set lower yields than the initial price guidance.

• 5-year tenor decreased by 25 bps.

• 10-year tenor decreased by 30 bps.

The final reoffer spread was set at SQ ASW +90 bps for the 5-year tenor, and SQ ASW +135 bps for the 10-year tenor.

Statements from the Minister of Finance and the Treasurer of Australia
Minister of Finance Sri Mulyani Indrawati described the inaugural Kangaroo Bond issuance as a strategic move.

“The strong interest from global investors, including those from Australia, reflects their confidence in Indonesia’s economic stability and the credibility of its fiscal management,” Sri Mulyani stated on Friday (August 8, 2025).

Australia’s Treasurer, Jim Chalmers, also praised the issuance.

“This bond is a prime example of the solid economic partnership between Australia and Indonesia,” Chalmers said.

Credit Ratings and Transaction Managers
Proceeds from the issuance will be used to finance the 2025 state budget (APBN). The credit ratings assigned are:

• Baa2 by Moody’s

• BBB by Standard & Poor’s

• BBB by Fitch

Three international banks acted as Joint Lead Managers in the transaction: ANZ, Standard Chartered Bank, and UBS Bank.

Indonesia’s Financing Diversification Strategy
The Kangaroo Bond issuance is part of Indonesia’s effort to diversify its funding sources. By tapping into the Australian financial market, the government is not only expanding its global investor base but also strengthening the bilateral economic relationship between Indonesia and Australia.

Given the strong market demand in this debut, there is potential for future issuances.