JAKARTA. The Indonesian government will hold another auction of Government Securities (lit. Surat Utang Negara/SUN) with an indicative target of IDR 25 trillion next Wednesday (3/1).

This auction is held in order to fulfil some of the financing target set in the 2024 State Budget. “The auction is carried out according to the Regulation of Minster of Finance No. 168/PMK.08/2019 regarding the Auction of Government Securities in the Domestic Primary Market,” said the Directorate-General of Budget Financing and Risk Management of the Ministry of Finance in the official release.

There will be 7 series of SUN offered in tomorrow’s auction. They consist of 2 series of Government Treasury Notes (lit. Surat Perbendaharaan Negara/SPN) and 5 series of Government Bonds (lit. Obligasi Negara/ON).

The coupon offered for SPN series is in the form of discounts, while the coupon attached to ON series range from 6.12% to 6.87%.

The SUN auction will be held using a tender system arranged by Bank Indonesia. It will be an open auction with multiple price scheme.

All parties may submit their bids in this round of auction. However, the bids must be placed through auction dealers authorised by the Ministry of Finance. (KR/ZH)