Bisnis.com, JAKARTA — The government’s plan to issue bonds denominated in Chinese yuan and Australian dollar for the first time can reduce exposure to US dollar volatility, which continues to be overshadowed by the trade war.
Economists consider the government’s move to issue non-US dollar-denominated government securities or SBN in foreign currency (global bonds) right amid still high global uncertainty due to US-China trade war. PT Bank Danamon Indonesia Tbk. (BDMN) economist Hosianna Evalita Situmorang said that diversifying global bond issuances is a strategic move to mitigate risks tied to the US dollar exchange rate.
She added that this approach reflects the government’s ability to capitalize on shifting global investor preferences. Issuing bonds in Chinese yuan, namely Dim Sum Bonds and Australian dollar, Kangaroo Bonds to attract investors looking to move away from US dollar-denominated assets.
“This strategy not only protects against exchange rate risks against the dollar but also capitalizes on the current shift in global investor appetite toward more stable alternative assets,” Hosianna said in a phone interview on Sunday (25/5/2025).
