Indonesia aims to auction Islamic bond

Jakarta, May 15 (Xinhua-ANI): The Indonesian finance minister plans to auction Islamic bond on May 22, as an effort to develop the market for the Islamic instrument, a statement from the ministry said here on Tuesday.

The sales with indicative target of one trillion rupiah (some 108.45 million U.S. dollar) that would be used to help plug the budget deficit this year.

The sales Indonesia's Islamic bond known as sukuk on April 24, l3, Feb. 23 and Jan. 14 were oversubscribed with the amount of funds raised exceeding target, indicating investors' appetite on the country's Islamic instrument continues rising.

The rising of investor appetite is expected to help developing of market for Islamic instrument in the world's biggest Muslim country. Indonesia has a huge market potential for the Islamic instrument market penetration as the country's market share has lagged behind neighboring Malaysia or Singapore whose Muslim population are less than Indonesia. (Xinhua-ANI)