JAKARTA. The auction of Government Securities yesterday (31/8) brought in a total of IDR 116.10 trillion, once again hitting the highest offer in the entire history of government auctions in Indonesia. In addition, foreign investors are starting to show a higher interest in them.
Based on the data from the Directorate-General of Financing and Risk Management (DJPPR) of the Ministry of Finance, the incoming bids in the said auction are the highest in 2021. It replaces the previous position held by auction on August 3, 2021, in which the total offers reached IDR 107.78 trillion. Meanwhile, the government had decided to name the winning bid of IDR 21 trillion with a bid-to-cover ratio of 5.53.
Deni Ridwan, the Director of Government Securities of DJPPR, claims that the market demand for Indonesia Government Securities is increasing. It is triggered by Joint Decree III between the Ministry of Finance and Bank Indonesia, which subsequently cut back the target for government securities auction. Another factor that plays in an increment in auction activities is the result of the Jackson Hole symposium, which was warmly welcomed by the market players.
Furthermore, Ridwan highlights the higher level of foreign investors’ participation in the recent auction, reaching 19.2% of the total bids. The most pursued series is the State Bonds with 11 and 21-years tenors. (AM/ZH)