Indonesia priced US$3 billion of global sukuk on November 6, 2026, drawing orders worth 2.9 times the amount on offer, the finance ministry’s debt management office (DJPPR) said in a statement reported by ANTARA. Its 10-year tranche yields 6.25%, against a 5.20% profit rate on the 10-year sukuk Indonesia sold in June 2024, according to that deal’s release.
The sale was the government’s sixth international market transaction of 2026, after five conventional bonds, and strong demand let it lower its initial price guidance, the DJPPR said. For sukuk investors and the banks that arrange sovereign sukuk deals, the deal combined pricing below initial guidance with rates above Indonesia’s June 2024 sukuk, 5.85% against 5.10% on the 5-year and 6.25% against 5.20% on the 10-year. Settlement is scheduled for November 13, 2026, and Dubai Islamic Bank and KFH Capital Investment Company were among the five joint lead managers.
The 10-year was the largest of the three series, according to the DJPPR. The 3-year SNI1129 series raised US$500 million at 5.45%, the 5-year SNI1131 raised US$1 billion at 5.85%, and the 10-year SNI1136 raised US$1.5 billion at 6.25%, with each coupon equal to its yield. Sukuk are Sharia-compliant Islamic securities, and the three series were sold in Reg S/144A trust certificate format.
The 10-year drew the lowest oversubscription. It drew 2.2 times the amount offered, against 2.9 times for the 5-year and 3 times for the 3-year, the DJPPR said. The office said the deal took advantage of global financial market conditions it judged conducive and positive sentiment after the US midterm elections.
Neither ANTARA nor Kompas, which carried the same ministry statement, gives the order book in dollars, the initial guidance levels, the investor split by region or type, the Sharia structure, the listing venues, ratings, or the use of proceeds.
Indonesia Sukuk Yields Run Above June 2024 Levels
Indonesia’s 5-year and 10-year sukuk carried higher rates in November 2026 than in June 2024. In June 2024, the Republic of Indonesia priced a US$2.35 billion sukuk at par, with profit rates of 5.10% on US$750 million of 5-year paper, 5.20% on US$1 billion of 10-year paper, and 5.50% on a US$600 million 30-year green tranche, according to the 2024 release hosted by Bank Indonesia. The 2026 equivalents are 5.85% on the 5-year and 6.25% on the 10-year, according to the DJPPR.
Oversubscription was higher. The 2024 sale drew a final order size of US$4.5 billion, an oversubscription rate of more than 1.9 times, with orders peaking at US$8.2 billion before final price guidance, the release said. The 2026 deal drew 2.9 times, but neither ANTARA nor Kompas gives its order book in dollars, so the two books cannot be compared in size.
Indonesia’s May 2022 sale carried lower coupons. Indonesia raised US$3.25 billion then, with 5-year notes at a 4.40% coupon and 10-year notes at a 4.70% coupon, which The Jakarta Post said was below initial price guidance, and total order books of US$10.8 billion, the newspaper reported. The finance ministry called it the government’s biggest global sukuk transaction in history at the time. At US$3 billion, the 2026 deal is smaller.
Dubai Islamic Bank Leads Indonesia’s Sukuk Again, With KFH Capital
Dubai Islamic Bank was a lead manager on Indonesia’s global sukuk in 2022, 2024, and 2026. In 2026, it shared the joint lead manager and joint bookrunner roles with BofA Securities, HSBC, J.P. Morgan, and KFH Capital Investment Company, the DJPPR said. BRI Danareksa Sekuritas, BNI Sekuritas, and Trimegah Sekuritas Indonesia were co-managers.
HSBC also appears in all three lead groups. The 2024 joint lead managers were Citigroup, Dubai Islamic Bank, HSBC, Mandiri Securities, and MUFG, and the 2022 group comprised CIMB, Deutsche Bank, Dubai Islamic Bank, HSBC, and Standard Chartered Bank, according to the Bank Indonesia-hosted release and The Jakarta Post. KFH Capital appears in neither the 2022 nor the 2024 list.
The 2024 release also named who signed off on the Sharia structure. That deal was structured on the Sharia principle of wakala, approved by DSN MUI and by the Sharia boards of Citi Islamic Investment Bank, Dubai Islamic Bank’s ISSC, HSBC, Mandiri Sekuritas, and MUFG Bank (Malaysia).
The 2024 Release Disclosed What the 2026 Reports Leave Out
Indonesia’s June 2024 sukuk release set out the investor base by tranche and region, a level of detail absent from the 2026 reports. The table shows each 2024 tranche’s regional allocation, per that release.
| Region | 5-year | 10-year | 30-year green |
|---|---|---|---|
| Middle East and Malaysia | 50% | 58% | 9% |
| Asia outside Indonesia and Malaysia | 15% | 11% | 34% |
| Indonesia | 10% | 11% | 1% |
| United States | 16% | 8% | 27% |
| Europe | 9% | 12% | 29% |
Middle East and Malaysia accounts took the largest share of the 5-year and 10-year tranches in 2024. The 30-year green tranche drew a different crowd, led by Asian investors outside Indonesia and Malaysia at 34%, while Middle East and Malaysia accounts took only 9%, according to the 2024 Bank Indonesia-hosted release.
The DJPPR said that high interest from investors in various regions reflected confidence in Indonesia’s economic fundamentals, supported by solid growth, prudent fiscal management, and credible monetary policy. Neither report says which regions those investors came from.
The 2024 release also named the issuer, Perusahaan Penerbit SBSN Indonesia III (PPSI-III), a legal entity the Republic established solely to issue Sharia-compliant securities in foreign currencies in international markets. Those certificates were dual-listed on the Singapore Exchange and NASDAQ Dubai, with expected ratings of Baa2 from Moody’s and BBB from both S&P and Fitch. Unlike 2024, the 2026 sale had no 30-year tranche, and neither report mentions a green portion.
Five Conventional Bonds Came Before Indonesia’s 2026 Sukuk
Indonesia’s five earlier international deals of 2026 were conventional bonds rather than sukuk, denominated in USD, EUR, CNH, JPY, and CNY, the DJPPR said. Indonesia first issued sovereign sukuk in 2008, according to finance ministry figures published by The Jakarta Post in October 2024. From 2014 to 2024, sovereign sukuk financed infrastructure projects worth Rp 241.94 trillion, and as of August 31, it had funded 6,104 infrastructure projects, the ministry said in October 2024.
Indonesia usually taps the global sukuk market once a year, The Jakarta Post reported in May 2022, and the 2024 release described that June sale as an annual return. Settlement of the 2026 certificates is scheduled for November 13, 2026. The first series, SNI1129, matures on November 13, 2029, and the last, SNI1136, on November 13, 2036.
Author
