JAKARTA - Indonesia has raised 18.34 trillion rupiah ($1.28 billion) from sales of retail bonds, nearly double its target, the finance ministry said on Monday, the proceeds of which will be used to fund its ballooning fiscal deficit.
More than 42,700 Indonesians purchased the retail bonds, which carry a 6.40% coupon per annum. Half of the investors were new and about 44% were under 40 years old.
The government's budget deficit is seen expanding by more than three times the original plan to the equivalent of 6.34% of gross domestic product this year, due to spending to fight the coronavirus pandemic.
Southeast Asia's largest economy has a target to raise around 900 trillion rupiah to finance its budget deficit in the second half of the year, some 397 trillion rupiah of which would be funded by the central bank through debt monetization. ($1 = 14,350.0000 rupiah)
(Reporting by Tabita Diela; Editing by Gayatri Suroyo) ((firstname.lastname@example.org; +628111135032;))