Indonesia Targets US$714.28 M from Retail SUKUK
The launching of State Retail SUKUK series SR-011 in Jakarta today (03/01). Photo by The Company.
JAKARTA (TheInsiderStories) – Indonesian government officially launched Retail SUKUK series SR-011 and hoped to raise fund of US$ 714.28 million (Rp 10 trillion) from this instrument, said the senior minister today (03/01).
Director General of Finance and Risk Management Ministry of Finance Luky Alfirman stated, this instrument is tradable so he is optimistic the fund raising will be higher than the last issuance of ST-003, which booked Rp 3.1 trillion.

This instrument is offered to individual investors from March 1-21. SR-011 has a 3-year tenor with a fixed rate coupon of 8.05 percent per year.

Alfirman said, that the purposes of the SR-011 issuance are to diversify the State Budget financing instruments and to broaden the investor base in the domestic market.

In addition, this instrument also aims to support the development of Islamic finance and strengthen the Indonesian capital market by encouraging the transformation of society from a saving-oriented society to an investment-oriented society.

“The presence of Retail State Sukuk is expected to provide investment alternatives for the community, support the realization of inclusive finance, and fulfill the financing of the development of various projects or activities in the 2019 State Budget,” said Alfirman.

He added, the characteristics of SR-011 are still the same as the previous retail sukuk series, which can be traded on the secondary market and have a 3-year tenor.

People who are interested in buying the SR-011 series can visit 22 distribution partners has appointed by the finance ministry. This retail SUKUK will be sold by offline.

The ministry recorded in the last 10 years, the total issuance of retail SUKUKs had reached Rp 144.7 trillion owned by 243.364 investors.

It’s not only the Retail SUKUK, Retail Saving SUKUK also booked the great achievement with total issuance Rp 10.6 trillion since 2016 with 36.861 investors. The last Saving SUKUK ST-003 has booked Rp 3.13 trillion with Rp 13.932 investors.

Meanwhile, government SUKUKs had booked Rp 1.044,7 trillion since 2008 until Feb. 2019. The outstanding of government’ SUKUKs until February 2019 worth of Rp 649.57 trillin, or 19 percent from the total of government bonds.

US$1: 14,000
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