JAKARTA, Feb 27 - Indonesia, which just sold $3 billion of global bonds, may raise a further $500 million from a Samurai bond soon and issue a global sharia-compliant bond this year, an official said on Friday, to fund its budget deficit.
With elections this year and economic growth under pressure from the global slowdown, Indonesia has said it will spend 73.3 trillion rupiah ($6.11 billion) on a fiscal stimulus package that includes infrastructure projects and tax measures.
The package has contributed to a budget deficit now forecast to hit 2.5 percent of gross domestic product.
Rahmat Waluyanto, treasury director-general at the finance ministry, said Samurai bonds worth $500 million may be issued within three months.
"It's part of our financing. It can be executed at any time, within three months at the earliest," he told reporters, adding that the issue would be "$500 million at the beginning, we're doing this one step at a time."
He added that Indonesia's first global sukuk is still expected to be issued this year.
Anggita Abimanyu, head of the finance ministry's fiscal policy board, said on Friday that it made sense to tap the capital markets while possible in case conditions worsened and costs increased later on.
Referring to the global bonds sold on Friday, he said; "It's done in one go. It's done. This is because looking ahead, things are likely to get worse and the spread is likely to widen, which makes it costlier" for the borrower.