JAKARTA (Yosefardi) – The government of Indonesia plans to, for the first time, issue saving bonds worth Rp2.5 trillion by mid of May, this year, Bisnis Indonesia reported this morning.

The bonds will have tenor of 2-3 years, offered to local investors, and will carry coupon of 8.5-9%.

The saving bonds would be offered to retail investors through secondary market, different with retail bond that are directly offered to retail investors.

The finance ministry also plans to offer government’s bonds in March 18, 2014 through auction mechanism, to raise an indicative proceeds of Rp10 trillion. The bond series to be offered are SPN12150108, SPN12150305, FR0069, FR0071, and FR0068.

On Tuesday (March 11) the finance ministry raised Rp1.27 trillion from offering the government’s Islamic syariah or sukuk, with the incoming bids reaching Rp2.76 trillion. On Monday (March 10), the government raised US$350 million from offering through auction mechanism the dollar bond. The incoming bids totaled US$599.4 million.