ASEAN KEY DESTINATIONS
Indonesia plans more bonds to boost budget
Indonesia raised more than expected in its first retail sharia-compliant bond issue, or sukuk, and said it will go ahead with plans to sell global bonds, global sukuk and yen-denominated bonds.
The finance ministry has said it plans to borrow a net 85.6 trillion rupiah ($7.16 billion) in 2009 to fund its budget deficit, which is forecast at 136.9 trillion rupiah, or 2.6 percent of GDP. It aims to tap a wide array of debt investors.
The government has also announced agreements for multilateral and bilateral standby loans to fund the budget deficit if market conditions turn even more difficult.
The three-year retail sukuk raised 5.556 trillion rupiah ($465 million) or more than three times the expected amount, and will mature on February 25, 2012.
The finance ministry plans to issue regular Islamic-compliant bonds with a maturity of five years or more to help finance the state budget.
It has also announced plans to raise $500 million to $1 billion from a global sukuk, but the deal has been delayed due to the difficult market conditions.
Indonesia's finance ministry plans to issue yen-denominated bonds, possibly in the middle of 2009.
The government of Japan has said it will help Indonesia to issue up to $1.5 billion of Samurai bonds and the two nations will double their bilateral currency swap arrangement to $12 billion from $6 billion previously.
Indonesia has said it plans to sell a global bond, denominated in dollars, as part of its MTN programme under which is can raise up to $4 billion.
It has appointed Barclays Capital and UBS as the underwriters for its global bond issue.
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