FINANCIAL MARKETS - Indonesia aims to delay global sukuk issue to H2

JAKARTA, Jan 14 - Indonesia aims to issue global sukuk in the second half of this year, a further delay to the planned Islamic bond offering, as it needs parliamentary approval to use 30 trillion rupiah of underlying assets for the issue, an official said.

Southeast Asia's largest economy currently has 10.8 trillion rupiah worth of underlying assets for sukuk issuance, Dahlan Siamat, a sharia debt director at the finance ministry, told Reuters on Friday.


"The 10.8 trillion rupiah is only for issuing retail and regular sukuk. We want to add 30 trillion rupiah of assets for global sukuk," he said, though he declined to name the amount to be issued.lion global sukuk offering to early 2011 because a lower budget deficit reduced last year's borrowing needs.

Siamat also said the finance ministry was working with the planning ministry on regulations for issuing project-based sukuk, which he expected could be finished this year.

There are two types of project-based sukuk, both with an Ijarah structure. The first allows investment in existing projects, and the second invites investors to finance certain projects from scratch.

In Ijarah, a seller sells assets to an issuer who will issue sukuk to fund the purchase. The sukuk represents beneficial rights in the assets and sukuk holders have an undivided proportionate beneficial interest in the assets.

" are mostly infrastructure, but can also be renovation of roads, bridges," he said.

Indonesia needs 2,500 trillion rupiah in total investment this year to achieve an economic growth of 6.4 percent, the country's investment board said. (Reporting by Adriana Nina Kusuma and Aditya Suharmoko; Editing by Neil Chatterjee)

Source : http://sg.news.yahoo.com/rtrs/20110114/tbs-indonesia-economy-sharia-b246348.html  - Jan 14, 2011