Indonesian govt aims for IDR 9 trillion in state sukuk auction next week
JAKARTA. The Indonesian government will hold an auction of Government Sharia Securities (SBSN) or government sukuk on December 5, 2023, with an indicative target of IDR 9 trillion.
There are 7 series of state sukuk that will be offered. The details consist of 1 series of Sharia State Treasury Letters (SPN-S) and 6 series of Project Based Sukuk (PBS).
The SPN-S series is offered in exchange for a discount. Meanwhile, the six PBS series are offered with rewards ranging from 5.37% to 6.87%.
In this auction, the Indonesian Government is also offering the PBSG001 series which is a green sukuk series. The issuance of the green sukuk series through this auction will complement the green sukuk series issuance program, which has been implemented 6 times in the global market since 2018 and 5 times in the domestic market since 2019.
"The PBSG001 series can also be used to support the RPIM (Macroprudential Inclusive Financing Ratio) program for Conventional Commercial Banks, Sharia Commercial Banks and Sharia Business Units," explained the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance.
The state sukuk auction will be carried out using an auction system organized by Bank Indonesia as the auction agent. All parties can submit purchase offers (bids) in the auction, through main dealers who have received approval from the Ministry of Finance. (KR/LM)