TEMPO.CO, Jakarta – The government is preparing four bond auctions with a target value of Rp10 trillion (US$833.3 million) for the fiscal reinforcement of the 2014 Revised State Budget, Finance Ministry’s Debt Management director general Robert Pakpahan said on Monday, October 20, 2014.
Robert considered that the opportunity to issue the bonds was wide open despite strict liquidity in the domestic market in the last quarter of this year. Increasing public demand for the state bonds, code-named ORI 011, has boosted the government’s confidence to reissue the bonds.
“This reflects strong public purchasing power,” Robert said.
The four tenders include two tenders for the state bonds (SUN) or the conventional government bonds (SBN) of Rp8.5 trillion (US$708.3 million) and two tenders or the state sharia bonds (SBSN) of Rp1.5 trillion (US$125 million). The SBSN tenders will be held in late November, while SUN tenders will take place in late December.
Robert said until October 20, 2014, the value of the auctioned bonds had reached Rp419.71 trillion (US$40.97 billion), accounting for 97.66 percent of the target, comprising Rp345.66 trillion (US$28.5 billion) for SUN and Rp56.30 trillion (US$4.7 billion) for SBSN.
JAYADI SUPRIADIN
