JAKARTA, Oct 25 (Reuters) - Indonesian government plans to curtail a recent strategy of "front loading" its bond sales as it expects state revenue to improve in 2017, finance minister Sri Mulyani Indrawati said on Tuesday.
The government hopes to provide investors with more predictability of its debt issuance volume for each quarter as it sees a "far more normal revenue pattern" next year.
Indrawati noted that revenue was small in the first quarter this year, but expect it to be more evenly-distributed next year.
"We will not be doing a very large front loading like we did this year," Indrawati told reporters in Jakarta.
For 2017, the government will coordinate its funding needs and revenue in a way that provides better economic signals to investors, she said.
This year, the finance ministry sold nearly 83 percent of its net bond issuance target of 364.87 trillion rupiah ($28.04 billion) in the first half of the year, according to ministry data. That includes a sale of $3.5 billion worth of global bonds in December 2015 as a pre-funding for its 2016 budget.
Foreign investors hold 38.8 percent of Indonesian government outstanding bonds.
($1 = 13,012 rupiah)
(Reporting by Bernadette Christina Munthe; Additional reporting by Fransiska Nangoy; Editing by Shri Navaratnam) ((Fransiska.Nangoy@thomsonreuters.com; +62 21 2992 7610; Reuters Messaging: fransiska.nangoy.thomsonreuters.com@reuters.net))
The government hopes to provide investors with more predictability of its debt issuance volume for each quarter as it sees a "far more normal revenue pattern" next year.
Indrawati noted that revenue was small in the first quarter this year, but expect it to be more evenly-distributed next year.
"We will not be doing a very large front loading like we did this year," Indrawati told reporters in Jakarta.
For 2017, the government will coordinate its funding needs and revenue in a way that provides better economic signals to investors, she said.
This year, the finance ministry sold nearly 83 percent of its net bond issuance target of 364.87 trillion rupiah ($28.04 billion) in the first half of the year, according to ministry data. That includes a sale of $3.5 billion worth of global bonds in December 2015 as a pre-funding for its 2016 budget.
Foreign investors hold 38.8 percent of Indonesian government outstanding bonds.
($1 = 13,012 rupiah)
(Reporting by Bernadette Christina Munthe; Additional reporting by Fransiska Nangoy; Editing by Shri Navaratnam) ((Fransiska.Nangoy@thomsonreuters.com; +62 21 2992 7610; Reuters Messaging: fransiska.nangoy.thomsonreuters.com@reuters.net))
