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View all search resultsJapan should act decisively against excessive market moves, Yuichiro Tamaki, head of an influential opposition party, told Reuters on Wednesday, after a brutal sell-off of Japanese government bonds sent a chill through global financial markets.
The Japanese government will issue around 11 trillion yen (US$70 billion) in additional bonds to help fund an economic package, even as its tax revenue for this fiscal year is expected to rise to a record high.
On a day when Facebook-parent Meta's share price plunged on the heels of disappointing quarterly earnings, demand for its bonds was reportedly four times greater than supply in a market keen to hold the social networking titan's debt.
Danantara has raised Rp 50 trillion through its first so-called patriot bond, with part of the proceeds earmarked for renewable energy and waste-to-energy projects. The company expects to launch initial tenders by the end of October.
Growing concern about debt levels in developed economies could see some bond investors look to emerging market issuances as an alternative, but in Indonesia, they will want answers about the new finance minister and the burden-sharing scheme with Bank Indonesia (BI).
The central bank has announced a continuation of its burden-sharing scheme with the government and has purchased trillions of rupiah worth of government bonds this year, but an economist questions the legal basis for continuing a policy initially intended as a crisis response.
Danantara Indonesia plans to raise Rp 50 trillion through so-called patriot bonds to fund waste-to-energy facilities and strategic projects in what the government bills as a move to boost public-private collaboration for long-term national development.
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