Indonesia has raised 21.1 trillion rupiah ($1.49 billion) through the sale of retail Islamic bonds, the finance ministry said on Tuesday, as Jakarta bumps up such issuance to reduce its dependence on foreign funds.
The Islamic bonds, offered between March 1 to 20, carry a coupon of 8.05 percent per annum and have a three-year maturity.
A total of 35,026 investors bought the bonds, the ministry said.
Jakarta has sold three series of retail bonds this year with a total value of 28.3 trillion rupiah.
They are a part of the government’s strategy to nearly double retail sales volume to 80 trillion rupiah in 2019 from last year, hoping to attract more millennial investors through online sales.
Bankers have warned that the government’s 2019 bond strategy is draining cash in Southeast Asia’s largest economy.
However, the central bank has vowed to provide sufficient liquidity for the financial market, including by easing banking rules, to boost loan and economic growth.
Originally published on www.pakobserver.net