JAKARTA- Indonesia raised 17.05 trillion rupiah ($1.19 billion) from a biweekly bond auction on Tuesday, below an indicative target of 20 trillion rupiah, the finance ministry said, blaming market uncertainty for weak bids.

Bids during the auction were worth 41.62 trillion rupiah, the lowest in the past year and down from 49.16 trillion rupiah in the previous auction on March 15.

Indonesia said investors were cautious amid market uncertainty related to the conflict between Russia and Ukraine.

"Other than that, there were expectations of an FFR increase by 50 bps in the May meeting, in line with rising U.S. inflation, which triggered an increase in U.S. Treasury (yield) to a 2.50% level for the 10 year-tenure," the finance ministry said, referring to the U.S. Federal Funds Rate.

Most of the bonds sold carried higher weighted average yields compared with market closing levels in the previous day.

However, the ministry said foreign investors' participation was higher during Tuesday's auction compared with a previous auction.

The ministry plans to hold an additional auction on Wednesday to raise a maximum of 2.95 trillion rupiah.

Indonesia has a $1.4 billion budget surplus in the first two months of the year, as high global commodity prices boosted state revenue in the resource-rich country, lowering its need to raise funds through the bond market.

However, the government expected its subsidy bill to balloon in coming months as it keeps fuel prices unchanged amid surging global oil prices.

($1 = 14,363.0000 rupiah)

(Reporting by Gayatri Suroyo; Editing by Kanupriya Kapoor)