ID :
48659
Tue, 03/03/2009 - 11:12
Auther :
Shortlink :
https://www.oananews.org//node/48659
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GLOBAL BOND SALES TO ENTRAP INDONESIA FURTHER : OBSERVER
Jakarta, March 2 (ANTARA) - The sale of state debentures (SUN) to foreigners in the form of global bonds will make it more difficult for Indonesia to free itself from financial dependence on foreign countries, an economic observer said.
"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'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 seven percent per annum, he said.
He 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 Indonesians.
Earlier, Finance Ministry spokesman Harry Z Soeratin had said the global bonds issued by Indonesia were the biggest bond offer in Asia since the beginning of 2009. It was also the largest bond offer ever made by the Indonesian government so far.
The global bonds were offered to over 200 investors for each tranche and there had been an excess of US$7.25 million in demand.
Geographically, about 55 percent of bonds with five-year tranches was distributed in the Asian region, 18 percent in Europe and 27 percent in the United States.
Some 30 percent of the bonds with 10-year tranches was sold in Asia, 20 percent in Europe and 50 percent in the United States.
"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'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 seven percent per annum, he said.
He 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 Indonesians.
Earlier, Finance Ministry spokesman Harry Z Soeratin had said the global bonds issued by Indonesia were the biggest bond offer in Asia since the beginning of 2009. It was also the largest bond offer ever made by the Indonesian government so far.
The global bonds were offered to over 200 investors for each tranche and there had been an excess of US$7.25 million in demand.
Geographically, about 55 percent of bonds with five-year tranches was distributed in the Asian region, 18 percent in Europe and 27 percent in the United States.
Some 30 percent of the bonds with 10-year tranches was sold in Asia, 20 percent in Europe and 50 percent in the United States.
