Indonesia said on Monday that demand for its first Islamic bond sold to retail investors had been better than expected as it outlined details of a Japanese government guarantee for a planned $1.5bn yen-denominated bond.

Sri Mulyani Indrawati, finance minister, said Rp5,556bn ($466m) was raised in the rupiah sukuk – bonds that do not pay interest – compared with the target of Rp1,700bn.