JAKARTA, June 4 (Reuters) - Indonesia has delayed its first offering of ‘diaspora bonds’ until November because coronavirus lockdowns are making it hard to gauge demand, a finance ministry official said on Thursday.
Deni Ridwan, director of sovereign bonds at Indonesia’s finance ministry, said proceeds from the sale, which was initially planned for August, will be aimed at funding the country’s programs, including its response to the coronavirus pandemic.
The diaspora bonds will be rupiah denominated, and have been tentatively set with a three-year tenure and a fixed rate, Ridwan told a video conference with Indonesians living in Japan.
Indonesia expects its budget deficit to widen to 6.34% of gross domestic product this year, officials said this week, as it steps up spending to keep the economy from shrinking as a result of the impact of the coronavirus crisis.
Ridwan said the government also plans to issue U.S.-dollar-denominated Islamic bonds as well as bonds in Japanese yen and euros later this year. ($1 = 14,060.0000 rupiah)
Reporting by Tabita Diela; Editing by Gayatri Suroyo and Alexander Smith