ID :
202691
Mon, 08/22/2011 - 09:44
Auther :
Shortlink :
https://oananews.org//node/202691
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US$15.7 BIL INDONESIAN GOVT BOND TO BE ISSUED, PRIORITY TO DOMESTIC MARKET
By Ahmad Fuad Yahya
JAKARTA, Aug 22 (Bernama) -- The Indonesian government is planning to issue Rp134.6 trillion (US$15.7 billion) in bonds next year, giving priority to the domestic market to avoid negative impact of sudden reversals amid growing worries in the global financial market.
An English daily, "The Jakarta Post", reported on Monday quoting the 2012 national budget draft that the rising foreign ownership in the government bond market currently was at a nearly record high of 34.9 per cent or totalling Rp242 trillion as of Aug 16 may be reversed in financial turmoil and hurt the country's economy.
"Up until now, there hasn't been a policy that could limit foreign ownership in government bonds, mainly due to the free floating exchange rate system that Indonesia adopts, so there's a possibility of increasing foreign ownership in government bonds," the government said in the draft budget.
Finance Minister Agus Martowardojo said to increase security in the
government bond market, the government will prioritise issuance in the domestic market by increasing liquidity and investor bases.
Foreign ownership in government bonds slid Rp6.8 trillion this month, amid massive selling preasures in the global financial market, as fears grew that debt troubles in Europe and the United States would lead to a recession that could slow down global demand and economic growh, the report added.
JAKARTA, Aug 22 (Bernama) -- The Indonesian government is planning to issue Rp134.6 trillion (US$15.7 billion) in bonds next year, giving priority to the domestic market to avoid negative impact of sudden reversals amid growing worries in the global financial market.
An English daily, "The Jakarta Post", reported on Monday quoting the 2012 national budget draft that the rising foreign ownership in the government bond market currently was at a nearly record high of 34.9 per cent or totalling Rp242 trillion as of Aug 16 may be reversed in financial turmoil and hurt the country's economy.
"Up until now, there hasn't been a policy that could limit foreign ownership in government bonds, mainly due to the free floating exchange rate system that Indonesia adopts, so there's a possibility of increasing foreign ownership in government bonds," the government said in the draft budget.
Finance Minister Agus Martowardojo said to increase security in the
government bond market, the government will prioritise issuance in the domestic market by increasing liquidity and investor bases.
Foreign ownership in government bonds slid Rp6.8 trillion this month, amid massive selling preasures in the global financial market, as fears grew that debt troubles in Europe and the United States would lead to a recession that could slow down global demand and economic growh, the report added.
