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The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) has issued four Indonesian rupiah-denominated bonds totaling IDR 5.3 trillion—approximately US$360 million—since August 2018. The bonds include an IDR 1.5 trillion—US$ 98.8 million equivalent—bond focused on water and

ocean resources on October 4, and account for one third of total issuances by supranational issuers in the IDR market this year.

The bonds build a bridge between international capital and the country’s development priorities, as Indonesia hosts the Annual Meetings of the World Bank Group and IMF in Bali this week.

The World Bank began issuing Indonesian rupiah bonds for the first time in August, supporting the country’s capital markets by connecting international investors with the currency and diversifying the market with a high quality issuer name. The issuances include green bonds and thematic bonds focusing on sustainable development and marine conservation, and attracted institutional and retail investors in the Americas, Asia, Europe and the UK.

The World Bank is supporting Indonesia’s capital market in a number of other ways, including by working with the government to develop the domestic green bond market. Milestone achievements in this area include the issuance of green bond regulations by the country’s Financial Services Authority, and issuance of the first corporate domestic green bond by state-owned enterprise PT Sarana Multi Infrastruktur. The World Bank is also assisting in the preparation of green bond impact reports for the bond, as well as for a green Sukuk issued by the government.

In parallel, the World Bank has partnered with the Indonesian Ministry of Finance to further enhance the country’s debt management capacity and increase the country’s resilience to financial shocks. The World Bank also helps countries build resilience against natural disasters and weather events by enabling access to insurance through the capital markets. In the last eighteen months, it has facilitated nearly US$ 2.35 billion of transactions—including for Caribbean countries, for the member countries of the Pacific Alliance (Chile, Colombia, Mexico, Peru), Pacific Island countries as well as provinces in the Philippines—through catastrophe bonds and swaps, including in local currency.

 

 

 

 

 

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