State Budget Financing Target Met; Govt Cancels Sukuk Issuance
11 November 2014 15:56 WIB
TEMPO.CO, Jakarta – The State Budget financing target from the issuance of sukuk (Islamic bonds) in primary markets this year has been reached. Therefore, the government decided to cancel the sukuk acction initially scheduled to take place today, November 11.
"The auction for Tuesday (November 11, 2014) is cancelled," said an excerptwritten by The Directorate General of Debt Management, Ministry of Finance yesterday.
The government routinely holds state sukuk (SBSN) auctions to meet part of the state budget's financing target. The auctions are an operational stage of derivative strategies in the financing sector, including debt management and financing optimization from domestic and overseas sources.
Next year, the government will boost state income from bond issuance in a bid to reduce the risk of tightening liquidity that has enveloped Indonesia since the first semester. Robert Pakpahan, director general of debt management at the Finance Ministry, said the government will continue to issue bond instruments denominated in US dollar, euro and Japanese yen.
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