INDONESIA - CAPITAL MARKETS - Demand for Local Sukuk ‘Excessive’ With More Likely Ahead, Official Says

www.thejakartaglobe.com -Surabaya. The government has issued Rp 120 trillion ($12.8 billion) in Islamic bonds during the past four years, which the Finance Ministry attributes to an “excessive” demand for them among Muslim investors.

The ministry’s director for Shariah financing, Dahlan Siamat, said the government issued its first Islamic bond, known as sukuk, in 2008, and as of Thursday it had issued a total of Rp 120 trillion.

“The achievement has been supported by excessive demand for sukuk in the domestic market,” Dahlan said in Surabaya on Thursday.   (source)

INDONESIA - CAPITAL MARKETS - Sukuk Sale in Works For End of the Year

www.thejakartaglobe.com - Indonesia will sell dollar-denominated sukuk toward the end of the year, according to Dahlan Siamat, a director of Islamic financing at the debt management office, provided it gets approval from the finance minister.

Dahlan declined to disclose the size of the offer, saying on Monday that “we have figures for the amount in the report we sent to the finance minister, but he will be the one to decide.”

He did not return calls from the Jakarta Globe seeking comment on the Islamic debt sale. Finance Minister Agus Martowardojo was not available for comment.  (source)

INDONESIA - CAPITAL MARKETS - Indonesia Reports ‘Excessive’ Demand for Sukuk Bonds

www.thejakartaglobe.com -Surabaya. The Indonesian government has issued Rp 120 trillion ($12.84 billion) in Islamic bonds, better known as sukuk, over the past four years, which the Finance Ministry attributes to an "excessive" demand among Muslim investors.

The ministry’s director for Shariah financing, Dahlan Siamat, said the government issued its first sukuk in 2008, and as of Thursday had issued a total of Rp 120 trillion in sukuk bonds.

“The achievement has been supported by excessive demands for sukuk in the domestic market,” Dahlan said in Surabaya on Thursday. “And the potential for state sukuk in the country is developing rapidly, given that 80 percent of Indonesians are Muslims, and there remains a large potential for them to become investors.”  (source)

INDONESIA - CAPITAL MARKETS - Indonesia to Sell Dollar-Denominated Sukuk Toward End of 2012

www.bisnis.com - JAKARTA: Indonesia will sell dollar- denominated sukuk toward the end of the year, according to Dahlan Siamat, director of Islamic financing at the debt management office, if it gets approval from the finance minister.

Siamat declined to disclose the size of the offer, saying in an interview in Jakarta today that “we have figures for the amount in the report we sent to the finance minister, but he will be the one to decide.” The nation last sold global Shariah-compliant debt on Nov. 14. (source)

INDONESIA - CAPITAL MARKETS - Sukuk Yields on the Slide as Govt Swamped With Eager Investors

www.thejakartaglobe.com - Yields on Indonesia’s Islamic bonds posted their first weekly decline this month on speculation supply will wane after the government rejected bids at an auction for the first time since March.

The yield on the 5.45 percent sukuk due January 2022 fell one basis point this week to 6.72 percent, the first drop since the period ending April 29.

The spread between the security and Malaysia’s benchmark 10-year Shariah-compliant note narrowed one basis point to 298 basis points during the week.  (source)

INDONESIA - CAPITAL MARKETS - ISLAMIC BOND: Government postpones bond issuance to 2013

www.bisnis.com - JAKARTA: The government announced plan to postpone issuance of Islamic bond (sukuk) for financing project from second semester 2012 to 2013.


Dahlan Siamat, Director of Sharia Financing at Directorate General of Debt Management of Ministry of Finance, said the plan to issue sukuk, or project financing sukuk, has not been included in the revised State Budget (APBNP) in 2012 which was passed last March.


"I think project financing is rather difficult. It is impossible to be issued this year, maybe next year, because it must be approved by the House first," Dahlan said here on Tuesday (17/04/2012).  (source)

INDONESIA - CAPITAL MARKETS - Govt allocates sukuk 42 trillion IDR

WWW.REPUBLIKA.CO.ID, JAKARTA – Indonesian sovereign sukuk (SBSN) lures the European investors then increases sukuk foreign ownership up to seven percent. The Director of Sharia Financing Policy at Directorate General of Debt Management Officials, Dahlan Siamat, said on Tuesday. Foreign ownership in sukuk was only three percent while the dominating foreign investors are from Middle East.

Siamat admits the domestic market can draw sovereign sukuk, but the investment grade momentum has affected sukuk demand from foreign investor. “We do not rely on one investor,” he added. (source)

INDONESIA - CAPITAL MARKETS - STATE BONDS: Government sukuk issuance January 31

www.bisnis.com - JAKARTA: The government will publish a project-based sukuk country on Jan. 31 to meet a target issuance of state bonds for the quarter I/2012 Rp53, 2 trillion.
For the issuance of Islamic bonds in the country this year, the project as well as state assets that could be used as the basic (underlying assets) reached Rp66, 1 trillion. (source)

INDONESIA - CAPITAL MARKETS - Sukuk set to finance development projects

Jakarta: Directorate General of Debt Management, Ministry of Finance plans to add a special state securities instruments to finance development projects included in the budget.
Waluyanto, Director General of Debt Management, MoF said that during this, the government only publishes Islamic government securities as underlying instruments project.
However, next year the government set the issuance of sukuk to fund projects in the State Budget (Budget) or known as sukuk based project financing. (source)

INDONESIA - CAPITAL MARKETS - Wanted, retail sukuk sales agent 004 series

JAKARTA: The government began looking for a securities dealer or the retail sharia state Sukri 004 series through an open auction mechanism.
Top 004 Sukri marketing services in the primary market, the government will give a commission or a fee of 0.45% of the nominal value of the sale Sukri by realtors (including VAT 10%).  (source)

INDONESIA - CAPITAL MARKETS - Indonesia to Price Seven-Year Global Islamic Bonds Today

(Updates with comment from OSK-UOB Islamic Fund Management in the fourth paragraph and Asian Finance Bank in eighth.)

Nov. 14 (Bloomberg) -- Indonesia plans to sell seven-year Shariah-compliant bonds today, helping the nation revive Islamic debt sales from the slowest half in three years. (source)

INDONESIA - CAPITAL MARKETS - Indonesian Islamic bond Sales will Recover, S&P Says

Indonesian Islamic bond sales will recover from the slowest half in three years as the government finances transport and power projects, according to Standard & Poor’s.

The government’s $140 billion five-year development program will boost offerings, said Allan Redimerio, S&P’s head of Asia infrastructure ratings in Singapore.  (source)

INDONESIA - CAPITAL MARKETS - Indonesia Waiting for ‘Window’ to Sell Dollar Islamic Bonds

Indonesia is waiting for the right timing to proceed with its second international offering of Shariah-compliant bonds, Dahlan Siamat, director of Islamic finance at the government’s debt management office, said today.

“We are waiting for a window,” Siamat said in a telephone interview from Jakarta. “We are still watching market movements.” He declined to elaborate. (source)

INDONESIA - CAPITAL MARKETS - Looking to Plug Deficit, Indonesia Starts Meeting Investors on Sukuk

Government officials leave today for a series of meetings with overseas investors to gauge their interest in an offering of Islamic bonds, or sukuk.

“We will start tomorrow [Friday],’’ said Dahlan Siamat, the Ministry of Finance’s director of Islamic finance. He was responding to a question about when the government would begin road shows to drum up interest in the dollar-denominated Islamic notes. (source)

INDONESIA - CAPITAL MARKETS - Indonesia to auction 1st project-based sukuk on Oct 11

(JAKARTA) Indonesia will offer its first project-based sukuk in an auction on Oct 11, a senior Finance Ministry official said yesterday, a move that will increase the supply of syariah instruments in the less-developed local sukuk market.  (source)

INDONESIA - CAPITAL MARKETS - Indonesia to issue first project-based sukuk in Oct 11 auction

Oct 4 (Reuters) - Indonesia's finance ministry aims to issue the country's first project-based sukuk at an auyction on Oct. 11, with maturities of six and 21 years, sharia director Dahlan Siamat told Reuters on Tuesday. (source)

INDONESIA - CAPITAL MARKETS - Indonesia Plans to Issue Maiden Islamic Treasury Bills

JAKARTA, KOMPAS.com - Indonesia plans to issue its maiden Islamic treasury bills Aug. 2, a senior official at the finance ministry said Monday, as part of its efforts to diversify its Islamic bond instruments.

Dahlan Siamat, a director in charge of Islamic finance at the finance ministry, said in a seminar that Indonesia would issue six-month bills next month. He didn't say how much the country plans to raise.

Indonesia, which has the biggest Muslim population in the world, has lagged behind neighbors such as Malaysia and Singapore in developing its Islamic finance industry. (source)

INDONESIA - CAPITAL MARKETS - RI govt to issue Islamic bonds to accelerate infrastructure development

Jakarta (ANTARA News) - The Indonesian government will issue Islamic bonds (sukuk) worth Rp20.9 trillion to finance infrastructure development.

"The issuance of the project-based treasury bonds is aimed at speeding up infrastructure development to improve public service, empower domestic industries and increasing government investment," shariah financing director of the Directorate General of Debt Management of the ministry of finance, Dahlan Siamat, said here on Friday. (source)

CAPITAL MARKETS - Govt issues Sukuk worth rp18 tln since early 2011

Jakarta (ANTARA News) - The government issued state sharia bonds (sukuk) worth a total of Rp18.84 trillion in the year ended June 20, a Finance Ministry official said.

"The amount came from the issuance of sukuk for Indonesian hajj fund, retail sukuk and Islamic fix rate," the director of sharia financing of the ministry`s directorate general of debt management, Dahlan Siamat said here on Friday. (source)

CAPITAL MARKETS - Sukuk Sales on Hold Until House Gives Approval

Indonesia has postponed Islamic bond sales for the past eight weeks as legislators delay approvals needed for new securities.

The government postponed auctions of rupiah sukuk due in five, 10 and 15 years on May 31 and June 14. Local companies have sold Rp 200 billion ($23 million) of Islamic bonds this year, compared with Rp 700 billion in 2010.  (source)