Indonesia embraces higher borrowing costs to sell more bonds

Weakness in the Indonesian currency is also making the debt sales harder going for the government, with the rupiah dropping about 3.8% this year.

JAKARTA: Indonesia offered higher yields to sell the most bonds in two months as the government continues to raise funds for stimulus to counter the impact of the pandemic.

The finance ministry on Tuesday sold 21.68 trillion rupiah (US$1.48bil or RM6.11bil) of non-Islamic debt, excluding T-bills, up from just 3.75 trillion rupiah at the last conventional bond sales two weeks ago. The larger amount sold saw the bid-to-cover ratio plunge to 1.86, the lowest in a year.