Cost for Withdrawing SUN Rp700 Billion
Wednesday, 31 January, 2007 | 15:21 WIB

TEMPO Interactive, Jakarta: The government must prepare funds of Rp700 billion for withdrawing State Bonds (SUNs) by debt switching method.

Rahmat Waluyanto, Director General of Debt Management at the Department of Finance, said that the government is offering a buy back of a total of 21 SUNs that will fall due on January 1, 2008 and December 31, 2012.

However, there are only 18 series of SUNs that investors want to be switched by SUNs with serial number of FR0042, having a 10.25 percent yield—that fall due in July 15, 2027.

“The offered price was 97.70 percent,” said Rahmat.
The government has decided to buy back SUNs valued at Rp5.921 trillion of the Rp9.918 trillion that auction participants offered.

Rahmat stated that the government must prepare funds of Rp700 billion for withdrawing the SUNs because investors tended to release SUNs that have high interest.

“It was around 11 to 15.5 percent,” he said.

However, Rahmat added that the government would still have benefits since the delay in the SUNs’ repayment time has resulted in the government's being economical.

ANTON APRIANTO