Indonesia trimmed the size of its planned sales of Islamic and yen-denominated debt because of concern that Greece’s debt crisis will spread, a finance ministry official said. “We will only sell at benchmark size,” Rahmat Waluyanto , director general of the debt management office, said in a telephone interview in Jakarta. A benchmark sale typically means $500 million. “The sales will be in the second half of this year.”
Bank Indonesia Deputy Governor Muliaman Hadad and Achjar Iljas, who held a similar position a decade ago, are named among candidates to lead the Financial Services Authority, said a lawmaker who will help select them.
The following borrowers are expected to sell Islamic bonds, which use asset returns to pay investors to comply with the religion’s ban on interest. Global sales of sukuk fell 28 percent to $7.9 billion so far this year, according to data compiled by Bloomberg. Issuance totaled $20.2 billion last year, up from $14.1 billion in 2008.
Asian issuers plan to sell $2.1 billion of Islamic debt in the fourth quarter, about 60 percent less than those announced in the Persian Gulf, where companies are seeking funds after Dubai World’s debt restructuring.