Indonesia sets online state bonds sales trial $73 million

Indonesia preparing to sell online debt securities of Rp1 trillion (US$73 million). The Indonesian Ministry of Finance announced to raise Rp1 trillion as part of the Rp846.6 trillion (US$62.3 billion) plan through the sale of state securities or SBN via online which will start in the first half of 2018.

Indonesian Finance Ministry official Luky Alfirman said the sale of online retail bonds was made to adjust the trend of conventional business to more digital where online transactions in Indonesia continue to increase and facilitate access for investors.

Tinuku Indonesia sets online state bonds sales trial $73 million

"We want to expand the scope of investors. Trial period targets Rp1 trillion, but we will reopen if more and more interested, "Alfirman said on Monday.

Online retail SBN sales enable public access to buy SBNs with a very small minimum purchase and begin with non-tradable instruments. Sales will be conducted using multiple channels such as partnerships with m-banking, e-commerce, and fintech companies.

"We are currently preparing a broad infrastructure in order to run this partnership," Alfirman said.

Alfirman said SBN's online retail sales are one of two new initiatives the ministry will make next year. Another innovation is to issue Green Bonds using the State Budget project as an underlying asset.