The Japan Bank for International Cooperation (JBIC) will expand its guarantee for samurai bonds issued by Indonesia, which may include corporate-issued ones, a Finance Ministry official said.
"Market access will be more general... There will be a different scheme... It's in preliminary talks *about* who will be guaranteed, how much is the amount. It will be expanded, but the details have not yet been finalized," Rahmat Waluyanto, director general of debt management at the ministry, said Monday.
He refused to elaborate further whether it would include corporate bonds. "It will be announced by JBIC," he said.
The government issued *35 billion (about US$382.40 million) of samurai bonds last year under the guarantee of JBIC to help Indonesia plug its budget deficit amid the global financial crisis. Samurai bonds can be issued only by those having investment grade.
JBIC will guarantee samurai bonds issued by the Indonesian government worth up to $1.5 billion until 2010. It means Indonesia can issue up to about $1.1 billion this year.
Rahmat said the bonds will be issued this year but the exact amount and date have not yet been disclosed.
This year's budget deficit is projected to reach Rp 133.7 trillion ($14.57 billion), or 2.1 percent of the gross domestic product, according to the 2010 state budget revision.
As of April 30, the government managed to absorb Rp 37.1 trillion, or 27.7 percent of the deficit.
Rahmat also said Indonesian government bonds remained resilient amid the Euro debt crisis, which might drive investors away from emerging market assets.
"The best resilience is in government bonds. Investors don't easily sell bonds, unlike stocks," he said.
Ratings agencies have cut the credit ratings of Portugal, Spain and Greece.
Rahmat added investors were still looking for government bonds despite an increase in risk perception toward emerging markets, which increased the bond price quotes.
"I haven't seen any serious impact *of the Euro debt crisis*," he said.
- JP/Aditya Suharmoko
