Government sells Rp 8.54t in retail bonds
Aditya Suharmoko, The Jakarta Post, Jakarta | Mon, 08/10/2009 1:50 PM
The government has sold Rp 8.54 trillion (nearly US$ 850 million) of its sixth retail bond ORI006, bringing the total deficit financing to 82.58 percent, the Finance Ministry announced Monday.
The sale of ORI006 yielded far greater value than that of ORI005, which only sold for Rp. 2.71 trillion in the wake of last year's global financial crisis.
"The sale (of ORI006) reached that figure due to expectations that interest rates would continue to decline, and that the bond market would improve. We also now assume that there was a rollover from investors of ORI001," director general of debt management Rahmat Waluyanto said in a press briefing.
He added that tax imposed on ORI006 was only 15 percent, lower than the 20 percent charged on bank deposits.
About 55.58 percent of the ORI006 order was worth between Rp 5 million and Rp 100 million, indicating that ORI006 was bought mostly by retail investors, said Bhimantara Widyajala, director of government bonds.
The top two buyers were private employees (22.45 percent), and entrepreneurs (21.03 percent). ORI006 received 1,222 orders on average from Indonesia's 32 provinces.
