Danantara’s First Bond Issue
State asset fund Danantara has raised Rp 50 trillion (US$3 billion) through the issuance of its inaugural patriot bond, a low-coupon instrument designed to channel long-term financing into renewable energy, waste-to-energy and other strategic projects. Danantara CEO Rosan Roeslani confirmed that the funds were already secured and the first project tenders were expected to open by the end of October.
While keeping investor details confidential, Rosan said the funds were fully secured for the rollout of large-scale waste-to-energy facilities across the country in support of the government’s target of achieving net-zero emissions by 2060. Danantara chief investment officer Pandu Sjahrir underlined that the fund’s priority was to ensure that the first round of patriot bond projects delivered measurable results. “The key is that projects must be on time, on target and impactful, especially the waste-to-energy projects we have announced,” Pandu said on Wednesday as quoted by Bloomberg. Success, he noted, “will be judged not by the amount of bonds sold, but by how effectively the proceeds are deployed.” (Jakarta Post)
Copper Concentrate Exports
Indonesia’s major copper producers are in talks with the government over export permits, as officials work to balance downstream ambitions with the practical challenges of smelter operations. Indonesia’s two designated copper concentrate exporters, PT Amman Mineral Nusa Tenggara (AMNT) and PT Freeport Indonesia, do not currently hold export permits. AMNT has been operating without an export permit since its previous one expired on Dec. 31 last year, while Freeport Indonesia’s six-month export permit, granted from March 17 to Sept. 16, has now lapsed, with no immediate clarity on its renewal from either the company or authorities. Sources have told various Indonesian media that the extension is expected.
The copper ban was originally promulgated after the success of Indonesia’s nickel ban. However, the two commodities are not comparable. Mining analysts warn against an immediate copper export ban, arguing that a hasty move could allow competitors like Chile and Peru to permanently seize Indonesia’s export market share. Furthermore, Indonesia’s local market does not yet have the capacity to absorb copper concentrates and associated smelted products. For a robust derivative industry, the government must foster growth in sectors like electronics, the largest consumer of copper, rather than focusing solely on upstream smelting. (from various media including the Jakarta Post)
Big Trade Surplus
Indonesia has achieved the highest trade surplus in years thanks to soaring exports of manufactured goods as traders sought to place orders ahead of rising United States import tariffs. The archipelago’s trade surplus, or the amount by which exports exceeded imports, rose to US$5.49 billion in August, Statistics Indonesia official M. Habibullah revealed at a press conference on Wednesday, the highest since November 2022.
The surplus was mostly driven by exports of manufactured goods, which grew 11.68 percent year-on-year (yoy) to $19.8 billion, thereby accounting for the lion’s share of the $23.89 billion in total non-oil and gas exports in August. Outgoing shipments of agriculture, forestry and fisheries products, meanwhile, grew at a respectable 10.98 percent pace yoy but only account for $603 million of overall exports. Exports of mined goods, on the other hand, contracted 15.5 percent yoy to $3.47 billion.(Statistics Indonesia)
House Passes 2026 Higher Spending Budget
The House of Representatives has passed the 2026 state budget, approving Rp 3.84 quadrillion in spending that will widen the fiscal deficit as President Prabowo Subianto pushes for faster growth. House Budget Committee chairman Said Abdullah said the plan was meant to help Indonesia face global challenges, but cautioned, “Will the 2026 state budget serve as a strong tool for the government? That will ultimately depend on the government itself.” The budget allocates Rp 3.15 quadrillion for central government spending and Rp 693 trillion in regional transfers, with added funds to ease tensions over tax hikes. The fiscal deficit is projected at Rp 689.1 trillion, or 2.68 percent of GDP, requiring greater debt issuance to finance the gap. (Jakarta Post)
US Business Groups Host Business Roundtable During UN Week
On September 23, 2025, the US Chamber of Commerce(USCC), the US-ASEAN Business Council(USABC), and the American Indonesian Chamber of Commerce(AICC), co-hosted a roundtable dialog on September 23 with a delegation from Indonesia led by Hashim Djojohadikusumo, President’s Prabowo’s Special Envoy for Climate Change, who is also his brother. Hashim was accompanied by Pandu Sjarir, Chief Investment Officer of Danantara, and Anindya Bakrie, Chairman of the Indonesian Chamber of Commerce and Industry. (President Prabowo’s schedule during his two days at the UN did not allow him to attend as originally planned). Led by the welcome remarks (on behalf of the US private sector) of Richard Adkerson, Chairman of Freeport-McMoRan, as well as those of other major US companies, the dialog underscored the strong business relations, including investment and trade commitments, between Indonesia and the US. Companies joining the event included sponsors: Freeport- McMoRan, Amazon, BP, Bell Textron, Siemens Healthcare, Visa, Boeing, Vantive, I Squared Capital, Mastercard, Green Century Capital, GE Healthcare, Pepsico as well as other participants: Philip Morris International, East West Diversified, 3M, Manulife, Vale Base Metals, The Asia Group, Proctor & Gamble, Spotify USA, Oracle, Vriens & Partners, Jhpiego, Amalyah Foundation, Asia Society, Tools for Humanity.
