JAKARTA. The Indonesian government will hold an auction of State Sharia Securities (SBSN) or state sukuk with an indicative target of IDR 14 trillion on 21 February 2023.

There are 2 series that will be offered in this auction, namely Sharia State Treasury Bills (SPN-S) and Project Based Sukuk (PBS). The proceeds from the sovereign sukuk auction will be used to fulfill part of the financing target in the 2023 State Budget, according to an official statement from the Ministry of Finance's Directorate General of Financing and Risk Management (DJPPR).

The SPN-S series will be offered at a discount. While the PBS series is offered with rewards ranging from 5.375% to 6.875%.

The allocation of non-competitive purchases for the SPN-S series is 50% of the amount won. While the allocation of non-competitive purchases is for the PBS series.

The auction will be held in an open auction using the multiple price method. All investors can submit bids in the auction, through main dealers that have received approval from the Ministry of Finance. (KR/LM)