Indonesia to issue bonds in RMB

JAKARTA - Following the success of its yen-denominated "Samurai Bonds", the Indonesian government planned to issue bonds denominated in the currencies of China and South Korea next year, the Jakarta Post quoted a minister as saying here on Monday.

"I believe 2013 is reasonable timing for it (ASEAN+3 bond) to be issued. The packages that we are going to offer will be similar to the Samurai Bonds in Japan," the Finance Minister Agus Martowardojo said.

Representatives of ASEAN member nations, China, Japan, and South Korea are scheduled to discuss the cross-border bond issuance, to be done under the ASEAN+3 bond market initiative, at the Asian Development Bank (ADB)'s meeting this week.

Samurai Bonds have helped Indonesia reduce its cost of funds to plug budget deficits in previous years as the yen-denominated bonds offered coupons that were significantly lower than rupiah bonds.

"We want the financing to be increased, or at least doubled from the current amount, which stands at $120 billion, " Martowardojo said.

The first Samurai Bonds were issued in July 2009, raising about 35 billion yen ($435 million).