uk.finance.yahoo.com - JAKARTA, Jan 24 (Reuters) - Indonesia plans to issue 2 trillion rupiah ($223.59 million) of project-based sukuk in the first half of this year, the finance minister said on Tuesday, after the country failed to sell the sukuk last year as investors asked for higher yields.
The Islamic instrument was first offered in October last year, only to see weak investor appetite due to the country's shallow sukuk market. (source)
The government has underlying assets of 5 trillion rupiah to issue project-based sukuk this year, said finance minister Agus Martowardojo.
Indonesia is also aiming to issue a global sukuk at the end of the first half, a finance ministry official said in December last year, just before the country was upgraded to investment status by Fitch and Moody's ratings agencies.
An investment grade status may help attract more risk-averse investors to put money into Indonesia, which has the world's largest Muslim population but lags neighbour Malaysia in attracting foreign investors to its local sukuk market.
Foreign ownership in Indonesian sukuk stood at 6.45 percent, or 4.05 trillion rupiah, as of Jan. 13, the latest finance ministry data shows.
($1 = 8,945 rupiah)
(Reporting by Adriana Nina Kusuma; Editing by Neil Chatterjee)
(Reporting by Adriana Nina Kusuma; Editing by Neil Chatterjee)
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