JAKARTA. The Indonesian government will hold an auction of State Sharia Securities (SBSN) or state sukuk on Tuesday (4/4) tomorrow, with an indicative target of IDR 9 trillion.

The series that will be offered in the auction are SPN-S (State Treasury Certificate - Sharia) and Project Based Sukuk (PBS). The details consist of 1 SPN-S and 5 PBS series.

"To fulfill part of the financing target in the 2023 State Budget," wrote the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance.

The compensation offered for the SPNS series is in the form of a discount. Meanwhile, yields for the PBS series are offered ranging from 5.375% to 6.875%.

The sovereign sukuk auction will be held in an open auction using the multiple price method. However, during the auction, all investors can submit bids through the main dealer, which has been approved by the Ministry of Finance.

According to data from idnfinancials.com, the Government of Indonesia had also previously held a sovereign sukuk auction on March 21, 2023. The indicative target targeted at the auction was IDR 11 trillion. (KR/LM)