Dubai debt problem not to delay RI's Islamic bonds issue

The Indonesian government would continue with its plan to issue Islamic bonds, or sukuk, next year despite the recent turmoil in the financial market following the fallout from Dubai's worrisome debt problems.

Debt management director at the Finance Ministry, Rahmat Waluyanto, told Kompas.com that the government would continue to issue sukuk bonds through retails, block booking, private placement and global issue.

He said that the government expects to raise a total of Rp 104 trillion from total bond issues next year, including from sukuk bond issuance.

He said the debt crisis in Dubai would benefit Indonesia. "The government is not worried. We hope investors who are getting out of Dubai will enter Indonesia."

Global markets are tumbling after Dubai World, the conglomerate that has long been the chief engine behind Dubai's explosive growth, on Wednesday announced it needed at least a six-month reprieve from paying its roughly US$60 billion debt.