Indonesia raises 3 trln rupiah from debt sales

(Reuters) - Indonesia's finance ministry raised 3 trillion rupiah ($298.1 million) in a debt auction on Tuesday, beating its target of 2 trillion rupiah, capitalising on strong foreign inflows.

Investor demand for assets in Indonesia has rebounded in recent months amid relative political stability during an election year and as some investors seek a higher risk profile

Improving commodity prices on the global market have also helped bolster Indonesia's economic outlook.

'Demand for government paper is growing stronger because of incoming liquidity from offshore,' said Budi Susanto, a bond analyst at Danareksa Sekuritas, referring to the more than 12 trillion rupiah of incoming bids.

Susanto said the government appeared to be steering foreign capital inflows to middle- and long-dated portfolios in a bid to reduce refinancing risks.

'The government seemed very eager for a push to long-dated bonds by giving a slightly higher than the expected yield,' Susanto said referring to a 11.487 percent weighted average yield for the 19-year bond compared to the expected yield of 11.30 percent.