The Ministry of Finance has not yet decided whether to issue Samurai bonds, Japanese yen-denominated government bonds (SUNs) this year, following news of an economic recession in the East Asian country.
“Are we going to issue Samurai bonds? Of course, we need to assess Japan's demand, economic development and market conditions,” the ministry's Budget and Finance Director Sminto Sastroswit was quoted as saying on Thursday. cnbcindonesia.com.
Smint said the government's current approach is to observe Japan's economy before making a decision.
This cautious stance is based on the principle of minimizing the cost of funds while maintaining acceptable risk before issuing corporate bonds.
The Japanese economy contracted by 3.3% and 0.4% in the third and fourth quarters of 2023, respectively, marking the beginning of a recession.
Due to this decline, Japan lost its title as the world's third largest economy after the United States and China, and Germany is now the world's third largest economy.
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Indonesia has issued Samurai bonds multiple times over the years. The most recent issuance took place in May 2023, with a total value of 104.8 billion yen (US$691.7 million).
