Indonesia to issue 26 trln rupiah of new bonds in Q2

JAKARTA Fri May 23, 2014 1:27am EDT

JAKARTA May 23 (Reuters) - Indonesia plans to issue 26 trillion rupiah ($2.25 billion) worth of new conventional and sharia bonds by the end of the second quarter to fund its budget deficit.

The finance ministry's debt office said it would issue a total of 66 trillion rupiah from April through June. It has already issued 40 trillion rupiah worth of bonds.

The bond issuance excludes dollar-denominated bonds and retail bonds of both conventional and sharia securities.

In the government's revised 2014 budget proposal, the outgoing administration this week pegged the budget deficit at 2.5 percent, up sharply from the initial forecast of 1.69 percent.

($1 = 11,530 rupiah) (Reporting by Nilufar Rizki; Editing by Jacqueline Wong)