Categories: Indonesia

The Preparation of Savings Bond for Green Projects in Order to Push Through

As one of the major greenhouse gas emitters in the world, Indonesia is turning to green finance markets to support new construction ventures that it promises will be environmentally and socially sustainable.

The country joins a rising number of developing countries in issuing these green and sustainable bonds, aiming to cater to foreign buyers who are ecologically and socially responsible. Yet opponents are asking exactly how renewable and safe these bonds actually are, highlighting greenwashing issues.

Along with this, they are preparing to issue savings sukuk (Islamic bonds) series ST007 to increase the domestic capital sector retail investor base and fund green ventures in the State Budget. For this reason, Savings sukuk will be available for subscription from 4 to 25 November 2020, the Directorate General for Funding and Risk Management at the Ministry of Finance shared it in a press release recently.

There will be a  floating coupon rate for the two-year sukuk savings that is due on November 10, 2022. In the first cycle, the coupon will be set at 5.5 percent (in line with the BI 7-day reverse repo rate of 4 percent, plus 150 bps spread) in January, 2021 and February 10, 2021.

In view of this, Via 31 e-SBN distribution partners stated that the public can subscribe to the green sukuk, with a minimum subscription of Rp1 million and a maximum subscription of Rp3 million.

In fact, Indonesian people participating in sukuk savings, the government claims, will contribute to national growth as well as help offset the effects of climate change. The government has previously released five 2020 series retail bonds, SBR009, SR012, ORI017, SR013 and ORI018, to collect Rp71.37 trillion in public financing.

Noto

Jakarta-based Newswriter for The Asian Affairs. A budding newswriter that always keep track of the latest trends and news that are happening in my country Indonesia.

Recent Posts

China and UAE Celebrate 40 Years of Diplomatic Relations: All the Sectors for Partnership

Celebrating 40 years of diplomatic ties, China and the United Arab Emirates (UAE) are poised to fortify an alliance that…

November 2, 2024

What’s in Store for Squid Game Season 2: New Twists, International Adaptations, and a Bold Return to the Games

Fans of the worldwide sensation Squid Game have much to look forward to this December as the show's producer, Hwang…

November 2, 2024

TWICE Joins Coldplay’s ‘Music of the Spheres’ Tour for a Seoul Spectacle in 2025

Especially when it's the internationally known British rock band Coldplay linking up with K-pop phenomenon TWICE, few events match the…

November 2, 2024

China Caught in the Crossfire: Tensions Rise as North Korea and Russia Strengthen Alliance

Tucked on a 12-story structure in northeast China, visitors flock to get a rare view of the junction of their…

November 2, 2024

Could Westeros Dragons Soon Soar into the Big Screen? ‘Game of Thrones’ Film Reportedly in Early Development

HBO's Game of Thrones has created a void in the fantasy world of television that no other show has quite…

November 1, 2024

Preparing for U.S. Election Impact: Sen. Imee Marcos Urges Self-Reliant Defense Amid Uncertain Times

Head of the Senate Committee on Foreign Relations, Senator Imee Marcos underlined the need of the Philippines getting ready for…

November 1, 2024

This website uses cookies.

Read More