PLN mulls issuing sharia bonds
Tuesday, March 30 2004 - 02:30 AM WIB
State-owned electricity firm PT Perusahaan Listrik Negara (PLN) is planning to issue sharia bonds, the Investor Indonesia newspaper reported in its Tuesday edition.
National Sharia Council’s organizing committee chief Mar’uf Amin confirmed the news that PLN and state-owned ship building company PT PAL Indonesia are mulling to issue sharia bonds.
“We will wait. They (PLN and PT PAL) said that they are in the process of making plans,” Mar’uf told journalists in Jakarta on Saturday.
But Mar’uf admitted that he didn’t know whether these two companies will issue sharia bonds this year or next year.
Sharia bonds, which are based on Islamic Law, are becoming increasingly attractive given the high return in compare to the regular bond market. There were eight national companies, which issued over Rp800 billion bonds in Indonesia. (*)