Danantara, Indonesia's sovereign wealth fund, will begin its US bond roadshow this week amid a deepening market rout. Fund officials will meet investors in Boston on June 9 before moving to New York the following day. The roadshow comes as Indonesia's stocks tumble and the rupiah hits an all-time low due to concerns about President Prabowo Subianto's interventionist economic agenda.

During Asian meetings last week, Danantara revealed plans to use part of the proposed bond proceeds to help refinance a $1 billion loan obtained earlier this year. Founded last year, Danantara now oversees nearly 900 state firms under Prabowo. Indonesia's finance and central bank officials have announced efforts to stabilize the currency and attract investment after the nation's stocks fell at the fastest pace worldwide last week.

Indonesian sovereign dollar bonds have seen spreads widen to 71 basis points this year, contrasting with tightening in high-grade Asian bonds. Danantara's bond offering memorandum clarifies the government won't guarantee its obligations. The fund is also planning local-currency "Merah Putih Bond" offerings with a 3% coupon rate, below market levels, targeting both local and foreign investors.