JAKARTA. The Indonesian government will hold another round of auction of Government Sharia Securities (lit. Surat Berharga Syariah Negara/SBSN) or State Sukuk on August 15, 2023, with an indicative target of IDR 6 trillion.

There will be two series of state sukuk offered in this auction, consisting of Sharia Treasury Notes (lit. Surat Perbendaharaan Negara – Syariah/SPN-S) and Project-Based Sukuk (PBS). The Directorate General of Budget Financing and Risk Management of the Ministry of Finance, said that this auction is held to fulfil some of the financing target set in the 2023 State Budget.

The SPN-S series will consist of 14022024, PBS003, PBS033, PBS034, PBS036, and PBS037. The yield offered for SPN-S series is discount, while the yield for PBS series ranges from 5.37% to 6.75%.

The allocation of non-competitive purchasing for SPN-S is 50% of the awarded amount, while the non-competitive purchasing of PBS series is 30% of the awarded amount.

The auction will be carried out using the system arranged by Bank Indonesia as the auctioning agent. It will be an open auction and use multiple price scheme. All interested investors may submit their bid in the auction through the primary dealer authorised by the Minister of Finance. (KR/ZH)