Business

No sale on govt sukuk in
first-ever auction

The Finance Ministry did not sell any sukuk (Islamic bonds) in its first-ever sukuk auction, on Tuesday, with investors apparently demanding higher yields.

The ministry was planning to sell Rp 1.5 trillion (US$ 150 million) worth of sukuk. Investors wanted to buy Rp 1.57 trillion worth of six-year IFR0003 sukuk, with a return of between 9.75 percent and 11.5 percent; and Rp 3.51 trillion of 11-year IFR0004 sukuk, with a return of between 10.5 percent and 12.5 percent.

"If we [sold the bonds] at today's auction, we would not have been prudent and may have damaged investor confidence," debt management director general Rahmat Waluyanto told reporters on Tuesday.

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