Bumper bond auction fuels Indonesia amnesty hopes

Indonesia’s tax amnesty is helping create bumper demand for government bond auctions, a government official told FinanceAsia on Tuesday. Investors and issuers are hoping the same thing will happen to corporate bonds.

Indonesia opened its latest auction for Islamic bonds on Tuesday, turning once again to a regular source of funding that gives it a quick gauge of liquidity in the domestic market. The response was overwhelming.

The government generated more than Rp17.5 trillion $1.33 billion of demand for the auction by around 1.30pm Jakarta time, said a government official. That allowed the government to raise Rp6 trillion, the biggest amount raised in such...