JAKARTA. The Indonesian government will hold another auction of Government Sharia Securities (lit. Surat Berharga Syariah Negara/SBSN) or State Sukuk on next Tuesday (23/1), with an indicative target of IDR 12 trillion. 

Said auction is meant to meet some of the financing target set in the 2024 State Budget, as clarified by the Directorate General of Budget Financing and Risk Management of the Ministry of Finance.

There will be 7 series of state sukuk offered in this round of auction. They consist of 2 series of Government Sharia Treasury Notes (lit. Surat Perbendaharaan Negara - Syariah/SPNS) and 5 series of Project Based Sukuk (PBS).

The yield offered for SPNS series is in the form of discounts, while the yield for PBS is offered in various portions, starting from 4.87% to 6.87%.

For the record, the Indonesian government will also reoffer PBSG001 series in this upcoming auction. It is a green sukuk offered in the domestic primary market. As of now, it is the sixth green sukuk issued in the global market since 2018. 

The state sukuk auction will be carried out with an auction system arranged by Bank Indonesia. All interested parties may submit their bids through primary dealers authorised by Bank Indonesia. (KR/ZH)