Indonesia Plans Bond Sale to Residents Living Overseas
- Selling bonds to non-residents to cut foreign ownership
- Finance ministry still studying denomination, tenor of notes
This article is for subscribers only.
Indonesia is planning to sell bonds to its citizens living overseas as Southeast Asia’s largest economy seeks to expand its funding pool and reduce the dependence on foreign fund inflows for financing a budget deficit.
The government is studying the so-called “diaspora bonds,” which will target non-residents from migrant workers to students, according to Luky Alfirman, director general for financing and risk management at the finance ministry. Details of the type of debt instrument, its tenor, denomination and transaction costs are being still discussed, he said.