Ministry of Finance aiming to raises Rp2 trillion (US$139.86 million) funds from SUKUK Savings  with Series ST05 - Photo by PT Bank Mandiri Syariah
JAKARTA (TheInsiderStories) – Indonesian government aiming to raises Rp2 trillion (US$139.86 million) funds from SUKUK Savings  with Series ST05 from retail investors, a government official said today (08/08). Last May, the country has issued ST04 with the same amount and yield 7.95 percent.
“The target is almost similar with the previous issuance around Rp2 trillion,” said the general director at Ministry of Finance Luky Alfirman at the launching of the new instrument at his office in Jakarta.
There are 14 banks, three brokers, and five financial technologies companies that are available to provide the ST005 at their platform.
He elaborated, the instrument has two years tenure and offered with yield 7.4 percent a year. The coupon is lower than SBR007 of 7.5 percent. Even so, Alfirman is still optimistic that the public will be interested to the instrument cause the yield will be adjusted to BI 7 days reverse repo rate every three months.
Previously, the ministry collected funds Rp3.2 trillion from the SBR007 sales, exceeded the indicative target of Rp2 trillion.

This year, the Ministry of Finance is targeting to raised around Rp80 trillion from the issuance of 10 retail bonds, both conventional and Sharia. The target is obtained by issuing 10 debt instruments this year.

Alfirman explained, there are 4 types of debt instruments to be issued in 2019, namely Indonesian Retail Bonds, Retail Savings Bond, Retail SUKUK, and Savings Bonds. He stated, “We will publish these four types of instruments flexibly so the total publishing will reach 10 times this year.”

With the issuance of these bonds, the government hopes to embrace more retail investors. This year, the government targets to attract 100 thousand retail investors.

“Since the issuance of the previous SBR005, we have used Single Investor Identification so the number of registered investors is truly a single investor, not duplicated as before,” he said.

He continued, the issuance of debt instruments was intended to finance the government budget, including the implementation of physical and non-physical development. In addition to issuing retail bonds in the country, the government also plans to issue debt instruments in foreign currencies.

“At present, we are conducting a roadshow to see market conditions before issuing global sukuk. After that, we can only find out the time and rate of the instruments issued,” he said.

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