Ministry Issues Retail Bonds; Asks Public to Finance State
21 September 2015 17:18 WIB
TEMPO.CO, Jakarta - Finance Minister Bambang Brodjonegoro is expecting that the sales of the ORI 012 retail bonds series would encourage the public to help finance the state.
"Just like Japan, whose foreign debt is very small because their people take part in financing the state by purchasing state securities," the minister said as he opened the ORI 012 launching ceremony in Jakarta, Monday, September 21.
According to Bambang, Indonesia needs to build a domestic base to reduce debt. "The ideal state budget is with strong taxes and loans that came from the country's own citizens," he said.
Other reasons for issuing the ORI12, Bambang said, are to increase the financial market penetration to create a domestic investors' base, and for the financing industry,
The offering period for the ORI12 began on Monday morning, September 21 until October 15.
The ORI 012 has a three-year tenor and is offered with a nine-percent coupon. The retail bond is expected to garner a proceeds of at least Rp20 trillion.
The minimum order to buy the ORI 012 is Rp5 million. Meanwhile, the maximum subscription is Rp3 billion.
INGE KLARA SAFITRI
