Indonesia May Sell Dollar Bonds to Domestic Market

Indonesia may offer dollar-denominated conventional and Islamic bonds targeted at local investors this year, to curb price swings caused by capital outflows.

“In the next issuance of global bonds, we might want to increase the allocation for domestic investors, or we might issue entirely in the domestic market,” Rahmat Waluyanto, director-general of the Finance Ministry’s debt management department, said in an interview in Jakarta yesterday. “We need to be vigilant as this can cause some potential risks, especially if there is any trigger to market volatility.”