Indonesia may sell as much as $500 million in its first sale of global Islamic bonds, the central bank’s deputy governor, Hartadi Sarwono, said on Thursday in Singapore.
The government plans to sell the bonds this year, Dahlan Siamat, director of Islamic financing policy at the Finance
Ministry, said in a separate interview from Jakarta. Indonesia has more than $600 million in assets available to back the sale of Islamic bonds, Siamat said. The debt, known as sukuk , is typically backed by assets or cashflow because Islamic law bars payment of interest.
Indonesia last month raised $3 billion from the largest sale of conventional dollar debt by an emerging market so far this year. Debt sales and overseas loans will help the government finance its budget deficit.