| By Andi Abdussalam |
Jakarta, Oct 25 (Antara) - The proceeds of the Indonesian Retail Bond (ORI) sales are still below the target, especially the ORI014 series. Hence, the government will launch seven more actions of the series before year-end.
Director General of Risk and Financing Management of the Ministry of Finance, Robert Pakpahan, said that he was not worried if the sales proceeds of Rp8.94 trillion of the Indonesian Retail Bond, ORI014 Series, are still below the previously set indicative target of Rp13 trillion."In terms of financing, we are not worried because we still have many options," Pakpahan stated when asked in Jakarta on Tuesday (Oct 24). Pakpahan added that one of the reasons why ORI014 was less attractive to retail investors was because of the low coupon rate of 5.85 percent, following the current interest rate growth. The coupon rate of 5.85 percent is also lower than the coupon rate on the ORI issuance of the previous series. "Currently, in Indonesia, the interest rate is down, so the 5.85 percent coupon rate is considered low. This reflects secondary market in the state securities market," Pakpahan remarked. |
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Rabu, 25 Oktober 2017
GOVT RETAIL BOND SALES STILL BELOW TARGET
Sabtu, 09 Mei 2015
BUSINESS OF BOND ISSUANCE EXPECTED TO IMPROVE IN Q2
| By Andi Abdussalam | |
Jakarta, May 9 (Antara) -- Despite delaying the issuance of bonds in
Indonesia due to the economic gloom last year, several companies see
better prospects in the second quarter of 2015 even though it is still
overshadowed by economic slowdown.
An analyst of PT Pefindo Riset Konsultasi, Guntur Tri Hariyanto, said
that the prospects of issuing corporate bonds in Indonesia in the second
quarter of 2015 will be better, although the downward trend of the
economy and the weakening of the rupiah will continue to prevail."Since early this year, the performance of Indonesian corporate bonds has been one of the best in the world, despite being overshadowed by risks at home," Hariyanto stated on Friday. He added that domestic bonds received positive response from investors because they offered high coupon interest amid the downward trend in the coupon values of global bonds. For instance, the yield of the government's 10-year bonds, which serve as a reference of bond coupons in the country, reached 7.7 percent as compared to that of the United States' market, which offered 2.1 percent. |
Rabu, 15 April 2009
GOVT WARNED OF 'TRAP' IN GLOBAL BONDS
By Andi Abdusslam
Jakarta, March 3 (ANTARA) - The global bonds the government sold to foreign investors to help plug its budget deficit and increase its foreign exchange reserves might adversely entrap Indonesia and make it more difficult for the government to free itself from financial dependence on foreign countries, economic observers warn.
"This will make it even more difficult for Indonesia to end its financial dependence on foreign countries," economic observer Ichsanuddin Noorsy said here on Monday.
Indonesia last week sold US$3 billion in medium-term notes, the country's largest ever dollar-denominated bond sale to help plug its budget deficit of Rp139.5 trillion.
According to Finance Ministry spokesman Harry Z Soeratin, the global bonds were sold in two tranches. The first tranche covered US$1 billion worth five-year bonds, with a yield of 10.5 percent while the second one covered US$2 billion 10-year bonds with a yield of 11.75 percent.
Noorsy said the issuance of global bonds would create a burden on the country's state budget in the future because only a small portion of the state debentures were purchased by domestic investors.
The global bond bids, particularly for the five-year notes, were viewed to have attracted only a small portion of local investors.
About 55 percent of bonds in the five-year tranche was distributed in the Asian region, 18 percent in Europe and 27 percent in the United States, while of those offered in the 10-year tranche, some 30 percent were sold in Asia, 20 percent in Europe and 50 percent in the United States.
The notes triggered total orders of US$7.25 billion from 200 investors, which were 2.4 times bigger than the total auction proceeds.
After all the 10-year term notes carried a yield of 11.75 percent, which is bigger than that of the five-year term at 10.5 percent.
Economist Drajad H. Wibowo said the bond yields were to high, particularly if compared with those of the US Treasuries and of the Philippines.
The Philippines recently sold US$1.5 billion of 10-year notes with an 8.5 percent yield, which is 3.25 lower than Indonesia?s 10-year bonds.
According to Noorsy, the sale of state debentures to foreigners in the form of global bonds will make it more difficult for Indonesia to free itself from financial dependence on foreign countries.
Indonesia's decision to sell global bonds will lead it to bear worse consequences than the Philippines which had sold bonds at an interest rate of about seven percent.
Head of the Finance Ministry's fiscal policy Anggito Abimanyu said the government issued the global bonds in order, among others, to help cover the budget deficit of Rp139.5 trillion.
"Our trade surplus has declined while there has been a capital outflow from our investment portfolio. The source from where we can maintain our foreign exchange reserves is foreign debts," Abimanyu was quoted by the Jakarta Post as saying last week.
Rahmat Waluyanto, director general for debt management, said meanwhile said that the government decided to go on the sale of its global bonds to develop market confidence.
Besides, he said the government was also planning to issue Samurai bonds in June. Samurai bonds are yen-denominated bonds issued in Japan by foreign governments and companies.
Indonesia has raised funds through the issuance of bonds denominated in U.S. dollar since 2004, but never floated samurai bonds.
Japan reached an accord with Indonesia recently to provide US$1.5 billion in aid in the case the Southeast Asian economy issues samurai bonds to raise funds, and to double its bilateral swap scheme to US$12 billion to help the country better prepare for short-term liquidity problems amid the economic crisis, Kyodo reported.
Japanese Parliamentary Secretary for Finance Shinsuke Suematsu and Indonesian Finance Minister Sri Mulyani Indrawati sealed the deal during their talks in Phuket, Thailand, before a one-day gathering Sunday of finance ministers from the 10-member Association of Southeast Asian Nations.
"With a view to ensuring the stability of the economic and fiscal situation in Indonesia, ministers agreed to enhanced cooperation between Indonesia and Japan," a joint press statement by the two said. Those support steps for Indonesia are "precautionary measures" that would complement the country's foreign reserves, according to the paper.
Specifically, Tokyo will offer up to $1.5 billion to Jakarta in the form of a guarantee by the Japan Bank for International Cooperation to the Indonesian government, when it floats samurai bonds in the Japanese capital market.
Apart from the global bonds and samuarai bonds, the government is also considering issuing other types of bonds such as dollar-denominated sukuk (sharia-based bonds).
"For a while however, we will not issue global bonds anymore. But in our pipeline there are global sukuk, samurai bonds and other options," Waluyanto said.
Elfindri, an economic analyst of the Andalas state university, warned the government recently of the impact in the future of the global bond sale as it would not be effective when the value of the rupiah was relatively low.
"The government should not force to add global bonds because in the current crisis, debt payments could not be intensified," he said.***2*** (A014/A/H-NG/A014) (T.A014/A/A014/A/A014) 03-03-2009 18:19:17
Jakarta, March 3 (ANTARA) - The global bonds the government sold to foreign investors to help plug its budget deficit and increase its foreign exchange reserves might adversely entrap Indonesia and make it more difficult for the government to free itself from financial dependence on foreign countries, economic observers warn.
"This will make it even more difficult for Indonesia to end its financial dependence on foreign countries," economic observer Ichsanuddin Noorsy said here on Monday.
Indonesia last week sold US$3 billion in medium-term notes, the country's largest ever dollar-denominated bond sale to help plug its budget deficit of Rp139.5 trillion.
According to Finance Ministry spokesman Harry Z Soeratin, the global bonds were sold in two tranches. The first tranche covered US$1 billion worth five-year bonds, with a yield of 10.5 percent while the second one covered US$2 billion 10-year bonds with a yield of 11.75 percent.
Noorsy said the issuance of global bonds would create a burden on the country's state budget in the future because only a small portion of the state debentures were purchased by domestic investors.
The global bond bids, particularly for the five-year notes, were viewed to have attracted only a small portion of local investors.
About 55 percent of bonds in the five-year tranche was distributed in the Asian region, 18 percent in Europe and 27 percent in the United States, while of those offered in the 10-year tranche, some 30 percent were sold in Asia, 20 percent in Europe and 50 percent in the United States.
The notes triggered total orders of US$7.25 billion from 200 investors, which were 2.4 times bigger than the total auction proceeds.
After all the 10-year term notes carried a yield of 11.75 percent, which is bigger than that of the five-year term at 10.5 percent.
Economist Drajad H. Wibowo said the bond yields were to high, particularly if compared with those of the US Treasuries and of the Philippines.
The Philippines recently sold US$1.5 billion of 10-year notes with an 8.5 percent yield, which is 3.25 lower than Indonesia?s 10-year bonds.
According to Noorsy, the sale of state debentures to foreigners in the form of global bonds will make it more difficult for Indonesia to free itself from financial dependence on foreign countries.
Indonesia's decision to sell global bonds will lead it to bear worse consequences than the Philippines which had sold bonds at an interest rate of about seven percent.
Head of the Finance Ministry's fiscal policy Anggito Abimanyu said the government issued the global bonds in order, among others, to help cover the budget deficit of Rp139.5 trillion.
"Our trade surplus has declined while there has been a capital outflow from our investment portfolio. The source from where we can maintain our foreign exchange reserves is foreign debts," Abimanyu was quoted by the Jakarta Post as saying last week.
Rahmat Waluyanto, director general for debt management, said meanwhile said that the government decided to go on the sale of its global bonds to develop market confidence.
Besides, he said the government was also planning to issue Samurai bonds in June. Samurai bonds are yen-denominated bonds issued in Japan by foreign governments and companies.
Indonesia has raised funds through the issuance of bonds denominated in U.S. dollar since 2004, but never floated samurai bonds.
Japan reached an accord with Indonesia recently to provide US$1.5 billion in aid in the case the Southeast Asian economy issues samurai bonds to raise funds, and to double its bilateral swap scheme to US$12 billion to help the country better prepare for short-term liquidity problems amid the economic crisis, Kyodo reported.
Japanese Parliamentary Secretary for Finance Shinsuke Suematsu and Indonesian Finance Minister Sri Mulyani Indrawati sealed the deal during their talks in Phuket, Thailand, before a one-day gathering Sunday of finance ministers from the 10-member Association of Southeast Asian Nations.
"With a view to ensuring the stability of the economic and fiscal situation in Indonesia, ministers agreed to enhanced cooperation between Indonesia and Japan," a joint press statement by the two said. Those support steps for Indonesia are "precautionary measures" that would complement the country's foreign reserves, according to the paper.
Specifically, Tokyo will offer up to $1.5 billion to Jakarta in the form of a guarantee by the Japan Bank for International Cooperation to the Indonesian government, when it floats samurai bonds in the Japanese capital market.
Apart from the global bonds and samuarai bonds, the government is also considering issuing other types of bonds such as dollar-denominated sukuk (sharia-based bonds).
"For a while however, we will not issue global bonds anymore. But in our pipeline there are global sukuk, samurai bonds and other options," Waluyanto said.
Elfindri, an economic analyst of the Andalas state university, warned the government recently of the impact in the future of the global bond sale as it would not be effective when the value of the rupiah was relatively low.
"The government should not force to add global bonds because in the current crisis, debt payments could not be intensified," he said.***2*** (A014/A/H-NG/A014) (T.A014/A/A014/A/A014) 03-03-2009 18:19:17
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