Gov’t eyes IDR 24 trillion in next week’s SUN auction
JAKARTA. The Indonesian government will hold another auction of Government Securities (lit. Surat Utang Negara/SUN) with an indicative target of IDR 24 trillion next Tuesday (30/1).
Said auction is held to meet some portion of financing target set in the 2024 State Budget. “The auction will be held according to the Regulation of Minister of Finance No. 168/PMK.08/2019 regarding SUN auction in the domestic market,” said the Directorate-General of Budget Financing and Risk Management of the Ministry of Finance in the official statement.
There will be 8 series of SUN auctioned off in this upcoming event. They consist of 2 series of Government Treasury Notes (lit. Surat Perbendaharaan Negara/SPN) and 6 FR series of Government Bonds (lit. Obligasi Negara/ON).
The coupon attached to SPN series is in the form of discount, while the coupon offered alongside ON series ranges from 6.625% to 7,375%.
For the record, one of ON series offered in this tender is FRSDG001, which is the first series of Sustainable Development Goals (SDGs) Bond offered in the domestic primary market. The issuance of SDGs Bond through this auction will complete the SDGs Bond issuance initiated by the government since 2021.
According to IDNFinancials data, the Indonesian government had initiated two SUN auctions since the beginning of 2024. In the first auction on January 3, 2024, the awarded amount clocked up to IDR 21.75 trillion. Meanwhile, in the second auction held January 16, 024, the government recorded awarded amount of IDR 24 trillion out of total incoming bids. (KR/ZH)