Gaet Valas, BI Bond Tenors 9-12 months to come

Jakarta, CNN Indonesia – Bank Indonesia ( BI ) will reactivate the issuance of National Central Bank Bonds or commonly known as Bank Indonesia Certificates (SBI) with a maturity of 9-12 month since 2011 has been disabled.

BI Governor, Perry Warjiyo, said the SBI's bid reactivation plan aims to develop investment instruments that may be held by foreign investors.

The goal is that foreign capital entering the country (influx of capital) increase. In addition, it is expected to increase the supply of US dollars (US), thus contributing to the exchange rate rupiah .

"We are currently studying the possibility of reactivating the SBI issue, in the near future we will announce it," Perry told the BI Complex on Thursday (19/7).

Nevertheless, the national central bank has not been able to guarantee the timing of the reactivation of SBI issues.

The First Deputy Governor of the Bank of Indonesia, Mirza Adityaswara, added that if the issuance of SBIs from 9 to 12 months was activated, the issuance of the Certificate of Deposit of the Bank Indonesia (SDBI) would be suspended.

SDBI is a rupee-denominated debt note that can only be purchased by domestic investors. While SBI can be purchased by domestic and foreign.

"The SDBI of the buyer is only domestic, while the SBI can be domestic and foreign, so this is related to our plan to attract the influx," he explained.

According to him, this plan of action will succeed in supporting the influx of capital and in accordance with the policy of increasing interest rates of BI, reaching 100 basis points (bps ) at 5.25%. The reason, the addition of investment instruments and the increase in bond yields will be able to attract foreign investors.

(lav)