Govt to issue international bonds in first quarter 2004
Govt to issue international bonds in first quarter 2004
The Jakarta Post, Jakarta
The government plans to issue international bonds worth US$400
million in the first quarter of 2004 to help finance the state
budget deficit, Bank Indonesia said Wednesday.
The central bank said that during a recent road show in
Singapore and Hong Kong, investors were enthusiastic towards the
presentations made by Indonesian authorities.
Next year's state budget deficit is projected at Rp 24.4
trillion (US$2.89 billion), or 1.2 percent of the country's gross
domestic product. Under the budget plan, the government plans to
issue domestic and international bonds totaling Rp 32.5 trillion.
The international bond issue is particularly crucial as the
country will no longer be eligible to a debt rescheduling
facility from the Paris Club of creditor nations as the existing
International Monetary Fund economic reform program will end
later this year.
Bank Indonesia spokesman Rizal A. Djaafara said central bank
governor Burhanuddin Abdullah had made a presentation about the
improving monetary, fiscal and banking conditions in the country.
He said many investors were asking about the law enforcement
issue in Indonesia.
In Singapore, 110 investors attended the meeting, while in
Hong Kong it attracted 70 investors. Some of the high profile
names include the Government of Singapore Investment Corporation,
Prudential Asset Management, American International Assurance,
Income Partners Asset, UBS Principle and ING Investment
Management.
The Indonesian financial authorities also met with
international rating agencies Standard & Poor's, and Fitch.
The government expects international rating agencies to lift
the country's ratings to investment grade amid significant
improvement in the country's macroeconomic conditions.
Standard and Poor's (S&P) put its long-term foreign and local
currency ratings for Indonesia at B and B+, respectively, which
are several notches below investment grade.
The government and Bank Indonesia officials will hold a
similar investor forum in Tokyo on Nov. 20. Before the Singapore
and Hong Kong visits, the authorities also took the road show to
London, Dubai and New York.