JAKARTA. Through the Ministry of Finance, the Indonesian government introduces the plan to auction off Sharia State Securities (SBSN) or State Sukuk with the indicative target of IDR 12 trillion on August 10, 2021.
The auctioned securities comprise Sharia State Treasury Bonds (SPN-S) and Project-Based Sukuk (PBS). According to the official statement released by the Directorate-General of Financing and Risk Management of the Ministry of Finance, the proceeds generated from this auction would be spent on meeting some of the financing targets set in the State Budget 2021.
Sukuk would be offered in six series. The highest coupon interest rate is ranging from 4% to 7.75% per year. Meanwhile, the provided tenor would vary from six months to 25 years.
The participants of this auction are 18 banks and security companies listed as the primary dealers. Then, the other two participants involved are Indonesia Deposit Insurance Corporation (IDIC) (lit. Lembaga Penjamin Simpanan/LPS) and Bank Indonesia. (KR/ZH)