JAKARTA. The Indonesian government will once again hold an auction of Government Sharia Securities (lit. Surat Berharga Syariah Negara/SBSN) or State Sukuk with an indicative target of IDR 12 trillion next Tuesday (5/3).

There will be 7 series of state sukuk offered in this auction by the government. They consist of 2 series of Sharia Treasury Notes (lit. Surat Perbendaharaan Negara – Syariah/SPN-S) and 5 series of Project Based Sukuk (PBS).

SPN-S is offered with a yield in the form of discounts. Meanwhile, PBS series will be equipped with a yield varying from 4.87% to 6.87%.

This state auction is carried out to meet some of the financing target set in 2024 State Budget, according to the official statement issued by the Directorate-General of Budget Financing and Risk Management (DJPPR) of the Ministry of Finance. The underlying assets for these 7 series of sukuk are projects/activities in the 2024 State Budget and state assets.

According to IDNFinancials data, the Indonesian government had issued 4 state sukuk auctions since the beginning of 2024. In the latest auction, held on February 20, 2024, the incoming bids were reported at IDR 19.88 trillion, resulting in awarded amount of IDR 12 trillion. (KR/ZH)