JAKARTA (TheInsiderStories) - The government of Indonesia is targeting to raise Rp6 trillion ($444 million) from Sharia bonds auction next Tuesday (Mar 7), Directorate General of Budget Financing and Risk Management announced.
The sharia bonds proceeds will be used to finance the State Budget deficit in 2017 which is targeted at around 2.41 percent of GDP or Rp300 trillion. The government will offer five series of Sukuk with maturities ranging between 2017-2031.
The government only offers one new series SPN-S 08092017 with very short term tenor. The remaining ones are reopening bonds with middle and long term tenors, with various yields, ranging from 6,25 percent until 8,87 percent per annum.
Samuel Sekuritas predicted Indonesia government bonds remain under pressure because speculation of US Federal Reserve to raise its rate in this month. It was recorded slightly weak last night.
The negative sentiment is also coming from the rise of annual inflation rate to around 3.83 percent, although it is still lower than expected by Bank Indonesia and economists, Rangga Cipta, Samuel Sekuritas stated in a report. (*)