TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Indonesia insists on issuing samurai bonds amid rupiah volatility

News Desk (The Jakarta Post)
Jakarta
Sat, May 12, 2018

Share This Article

Change Size

Indonesia insists on issuing samurai bonds amid rupiah volatility Brokers monitor the trading of bonds and other debt papers at a dealing room of Treasury Bank Rakyat Indonesia in Jakarta. (kompas.com/Hendra A Setyawan )

T

he Finance Ministry has said the government will go ahead with its plan to issue global Samurai bonds (yen-denominated bonds) in the first half of 2018 amid the current rupiah volatility.

“We see the Japanese market is a bit different,” said Finance Ministry risk and financing management director general Luky Alfirman in Jakarta on Friday as reported by kontan.co.id, without explaining the differences in detail.

Meanwhile, only a few investors bought debt papers issued by the government. Orders for five series of government debt papers (SUN) only reached Rp 7.18 trillion (US$514.95 million) although the indicative target was Rp 17 trillion.

It was the lowest order since June 18, 2013, which was recorded at Rp 7.74 trillion.

Luky said the market was now in a volatile condition, heading toward a new equilibrium, particularly because the US treasury yield had reached 3 percent. Therefore, he believed the current condition was only temporary.

Luky said the government was not worried about the current market condition because it had applied front loading for its payment strategy.

He added the government could also rely on state-owned enterprises (BUMN) and special public services (BLU) to absorb government bonds.   

“From the financing side, we are still on track. We hope the market will return to a stable condition,” he added. (bbn)

{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.