JAKARTA. The Indonesian government arranges another Government Securities (lit. Surat Utang Negara/SUN) auction scheduled next Monday (29/5), aiming an indicative target of IDR 17 trillion.

The auction is carried out to fulfil a part of its financing target set in the 2023 State Budget. The legal references of this auction are the Regulation of Minister of Finance No.168/PMK.02/2020, No.168/PMK.08/2019, and No.38/PMK.02/2020.

The auction will begin Monday (29/5) at 9 AM WIB and close at 11 AM WIB. The settlement date is scheduled on Wednesday, May 31, 2023.

There will be 8 series of securities offered in the tender, consisting of 2 series of Government Treasury Notes (lit. Surat Perbendaharaan Negara/SPN) and 6 series of Government Bonds (lit. Obligasi Negara/ON). The coupons attached to SPN series are in the form of discounts, while ON series has various coupons ranging from 6.37% to 7.37%.

The SUN auction will be an open auction using a multiple price scheme. All parties may submit their bids, but they must submit the bids through the auction members authorised by the Ministry of Finance.

According to IDNFinancials data, the Indonesian government had previously held a SUN auction a couple of weeks ago. In said auction, the total incoming bids clocked up to DIR 65.45 trillion, while the awarded amount reached IDR 15 trillion. (KR/ZH)