JAKARTA. The Indonesian government will once again arrange an auction of Government Sharia Securities (lit. Surat Berharga Syariah Negara/SBSN) or State Sukuk with an inidicative target of IDR 7 trillion.
The auction will be carried out next week, on July 26, 2022. “It is intended to reach the financing target set in the 2022 State Budget,” the Directorate-General of Budget Financing and Risk Management (DJPPR) of the Ministry of Finance, confirmed in the press release.
In this round of auction, the government will offer one series of sharia treasury notes (lit. Surat Perbendaharaan Negara Syariah/SPN-S) and five series of project-based sukuk (PBS). The SPN-S will be offered alongside a discount, while PBS series will be equipped with a profit-sharing yield ranging from 4% to 6.75%.
The auction of SBSN will be an open auction and use a multiple price scheme, as per usual. All parties are free to place their bids in the auction through the primary dealers authorised by the Ministry of Finance.
There are 18 primary dealers in question, consisting of 14 banking institutions and four security companies. (KR/ZH)