Bond Funds to be Received This Week
Monday, 12 February, 2007 | 16:50 WIB

TEMPO Interactive, Jakarta: The proceeds of US$1.5 billion from the sale of international bonds are expected to be received by the state on February 14, in line with the agreement of international bonds issuance between the government and investors.

Mulia Nasution, Secretary General of the Department of Finance, said he hoped that the fund allocation to be received from these international sales may cover half the deficit of the 2007 State Budget.

“With regard to the needs of the state budget, the proceeds of the sale of global bonds will be used for financing the deficit,” said Mulia on Friday (02/09) in Jakarta.

The government has issued international bonds valued at US$1.5 billion and will fall due on February 17, 2037.
The bonds have a coupon level of 6.625 percent and issuance yield level of 6.75.

Rahmat Waluyanto, Director General of Debt Management at the Department of Finance, said that the success of the international bonds showed that the confidence of the international market in the Indonesian economy was extremely high.

“Investors' confidence in Indonesian loans and long-term economic fundamentals is very high,” Rahmat said from New York, the US, through a SMS on Thursday (02/08).

AGUS SUPRIYANTO