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Jakarta Post

Minister encourages more SOEs to issue Komodo bonds

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, January 31, 2018   /   12:43 pm
Minister encourages more SOEs to issue Komodo bonds Finance Minister Sri Mulyani Indrawati (fourth right) pushes a button to symbolically open the trading day at the London Stock Exchange on Jan. 29, while State-Owned Enterprises Minister Rini Soemarno (second right), Wijaya Karya (Wika) president director Bintang Perbowo (third left) and other representatives wave Indonesian flags during the Market Open Ceremony. Following Wika's successful admission to the London bourse, Rini is urging other state-owned companies to follow suit. (Tribunnews/Tribunnews)

State-owned Enterprises (SOEs) Minister Rini Soemarno is encouraging other SOEs to issue rupiah-denominated Komodo bonds, following the success of toll road operator PT Jasa Marga and construction firm PT Wijaya Karya (Wika) in listing their bonds on the London Stock Exchange (LSE).

She said one or two SOEs were in the process of issuing Komodo bonds. “The target is for the bonds to be issued in April or May,” Rini said after taking part in the LSE's Market Open Ceremony on Jan. 29 to mark Wika's successful admission to the bourse.

Rini, however, declined to name the SOEs that would be issuing the rupiah debt papers.

Earlier, PLN president director Sofyan Basir said the state-owned electricity company might follow in the steps of Wika and Jasa Marga, and that PLN planned to issue bonds worth Rp 10 trillion (US$747 million) to Rp 20 trillion in the first half of 2018.

Wika listed its global rupiah-denominated Komodo bonds on the LSE on Monday, eyeing to collect Rp 5.4 trillion ($403.4 million), while Jasa Marga listed the bonds on the same bourse, aiming to collect Rp 4 trillion ($299 million).

Rini expressed hope that flag carrier Garuda Indonesia would also issue similar debt papers, which would not only diversify its financial resources, but also introduce the airline to the wider global market.

The minister, however, said the airline needed to improve their performance first. “Maybe Garuda could issue Komodo bonds next year,” she said as reported by (bbn)