Indonesia Sells Longest-Ever 40-Year Bond as Easing Pivot Nears

  • Government issues rupiah bond due 2064 via private placement
  • Notes cater to demand from pension funds and insurers
Buildings and houses in Jakarta.Photographer: Dimas Ardian/Bloomberg
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Indonesia sold 40-year local-currency bonds for the first time as looming interest-rate cuts boost the allure of longer-tenor debt.

The government raised 3 trillion rupiah ($194 million) from the sale of debt papers due 2064 through a private placement, Finance Ministry Director Deni Ridwan said in a statement on Tuesday. The note, which is a record maturity for a rupiah-denominated issue, carries an annual coupon of 6.875%.