Indonesia lawmakers approve bill on sharia debt

JAKARTA - An Indonesian parliamentary commission and the government agreed to pass a new bill on Islamic sharia debt into law, a legislator said on Monday, allowing the government to issue its first Islamic bond to help finance the budget deficit.

The approval came as the government is finding it harder to raise debt through the conventional bond market amid volatile global financial markets. Indonesia needs to increase its debt issuance to finance a higher budget deficit target this year.

The finance ministry had delayed issuing its planned sovereign Islamic bonds due to delays in passing the new bill on Islamic debt.