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Sharia Bonds Fund Double Track Railway

Translator

Editor

6 February 2014 14:22 WIB

TEMPO.CO, Jakarta - The government is funding a number of infrastructure projects with the proceeds of the Government Sharia Bonds (sukuk) worth Rp 1.57 trillion. According to the Debt Management Director General at the Finance Ministry, Robert Pakpahan, some projects to be funded by the sharia bonds include the double track railway at segment II of the Cirebon-Kroya and Manggarai-Bekasi routes. The funds will also be used to renovate the Hajj dormitory.

A total of Rp 745 billion was allocated for the Cirebon-Kroya double track railway, while another Rp 626 billion went to the Manggarai-Bekasi double track railway project. These projects were initiated by the Transportation Ministry. As for the Hajj dormitory, a project by the Religious Affairs Ministry, the budgeted funds topped  Rp 200 billion.

Government Sharia Bonds matures in 10 years time, with a fixed interest rate of 9 percent. The bonds will be issued during the second semester this year. They are a part of the government bonds to be issued in 2014, which is expected to bring in Rp 60.37 trillion.

ANANDA PUTRI| EDI FAISOL (SEMARANG) 



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