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Jakarta Post

Indonesia insists on issuing samurai bonds amid rupiah volatility

  • News Desk

    The Jakarta Post

Jakarta   /   Sat, May 12, 2018   /   08:55 am
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. ( A Setyawan )

The 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, 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)