Selling agents are aiming to raise 10 trillion rupiah ($1.12 billion) from the issue, bond director Bhimantara Widyajala told Reuters, adding the ministry has not decided on the amount it plans to absorb.

The retail bond, called ORI008, is aimed at individual investors, with a minimum purchase of 5 million rupiah and maximum 3 trillion rupiah per individual. It is offered from Oct. 7 to 21.

The 7.3 percent coupon is higher than bank deposits and the current yield of benchmark 10-year Indonesian government bond of 7.04 percent.

The Indonesian bond market has seen heavy foreign selling recently on euro zone worries, but yields remain relatively stable due to government and central bank interventions.