Minister Urges Local Investors to Buy Bonds

TEMPO.CO, Jakarta - The high share of foreign ownership prompted Finance Minister Chatib Basri to encourage domestic investors to buy the Indonesian Retail Bonds (ORI). As of September 29, 2014, foreign investors own Rp447.7 trillion (37.33 percent) of state securities (SBN) in the secondary market. This is the highest foreign share since December 2012's 32.98 percent.

According to Chatib, local investors' ownership on ORI is needed to minimize the impact of capital outflows that could put a pressure on the nation's financial market. Foreign investors can withdraw their funds from Indonesia at any time if investments in other countries are considered more profitable.

The Ministry of Finance yesterday released the sales of ORI Series 011 in West Jakarta. The ORI 011 is offered from October 1 to 16. Chatib said the ORI 011 sale is one of the government's strategies in reducing state dependence on external financing. The ORI 011 can be purchased in 18 banks and three securities companies, PT Danareksa Sekuritas, PT Trimegah Securities Tbk, and PT Sucorinvest Central Gani.

Robert Pakpahan, director general of Debt Management at the Finance Ministry, is optimistic that the sales target of Rp20 trillion will be met. This year's ORI 011 sales target is the same as last year's.

GANGSAR PARIKESIT