Indonesia to Sell Global Bonds to Three Countries

JAKARTA, MAKE MONEY BLOG$ - Indonesia is ready to offer bonds to the international market namely to Switzerland, Britain and the United State to raise funds to cover its budget deficit.
"Their governments have confirmed. That is no longer a problem. But we still have yet to see market conditions. In general they view positively on Indonesian conditions," the acting chief of the Fiscal Policy Agency, Bambang Brodjonegoro, said here on Monday.

He said after roadshows the three countries also gave appreciation to Indonesia’s capability in dealing with inflation and maintaining its national resilience.
"We are updating our financing plan for the next year. The challenge might be more about inflation which we are now still discussing and then sustainability of the budget. But overall it is positive. They are ready to enter," he said.
The issuance of the global bonds will follow the financing plans that have been put in the 2011 budget and is for supporting the issuance of state debentures.
"It will be done in line with the 2011 budget plans. Some have been issued for domestic markets. In the future the focus will also be on the domestic market. This one is for covering the balance," he said.
Bambang assured the issuance of the global bonds would not clash with the Japanese plan to increase debts for rehabilitating that country recently hit by earthquake and tsunami.
"With regard to Japan I believed they could be self-reliance. What we see now is the market conditions which are still following Japan. Therefore our roadshow is non-deal in nature and no decision is made," he said.
He said the bonds to be issued have a long-term tenure as most investors prefer that. Moreover now when the bond market potential is promising and relatively good in terms of market demand.
"The market potential is big. I believe they all see Indonesia’s performance is good. Ours is also relatively good in terms of demand compared to that offered by rivals that have the same tenure. It is not a problem. What we need to see now is how is the market in general," he said.
Bambang could not as yet tell about the indicative target to be achieved saying it was under the authority of the Directorate General of Debt Management.
"I do not know. That is under the authority of Rahmat (the director general of debt management). I could not tell ahead of him," he said.
The government has already named three securities namely JP Morgan, Deutsche Bank and UBS to offer the bond which is expected to be issued in the first semester this year.

Source:antara

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