"The issuance of the project-based treasury bonds is aimed at speeding up infrastructure development to improve public service, empower domestic industries and increasing government investment," shariah financing director of the Directorate General of Debt Management of the ministry of finance, Dahlan Siamat, said here on Friday.
He said study is now being made on the financing schemes and coordination is also still being done with the National Development Planning Board and ministries concerned with regard to readiness of projects to be financed.
"The projects to be financed must be the ones prioritized under the National Mid-term Development Plan (RPJMN) and receiving national budget allocations while the use of proceeds is not against shariah principles," he said.
Dahlan said the government was considering to issue two kinds of sukuks namely the one based on ministries/state institution projects and already put in the national budget as underlying projects and the one that is specifically issued for project financing.
"Sukuk to be issued for 2011 will be based on projects of the ministries or state institutions (K/L) as the underlying projects namely the transportation and public works ministries totaling 1,606 development plans," he said.
The projects to be financed by the proceeds from sukuk issuance are among others road projects reaching 40 percent, housing 15 percent, ferry and port facilities 16 percent and airpor capacity improvement 5.6 percent spreading in several provinces.
The structure of the project-based state sukuk will be based on Ijarah Asset to be Leased contract meaning the use of projects as underlying projects for the issuance of the sukuk would not change the mechanism of the implementation of activities by K/L including budget implementation.
He said the sukuk issuance is still awaiting a government regulation which is now still being discussed.
The director general of debt management, Rahmat Waluyanto, earlier said that state debentures (SUN) and state sukuk would be prioritized as sources for future financing.
"Moreover in the near future the rating of Indonesian debts will be investment grade so that state bonds will attract long-term investors and financing more efficient," he said.