JAKARTA. The Indonesian government will initiate the auction of Government Sharia Securities (lit. Surat Berharga Syariah Negara/SBSN) next Tuesday (10/1), aiming for an indicative target of IDR 14 trillion.

“The SBSN series that will be put into auction include Sharia Treasury Notes (lit. Surat Perbendaharaan Negara – Syariah/SPN-S) and PBS (Project-Based Sukuk). They will be auction to help to fulfill some of the financing target set in the 2023 State Budget,” the Directorate-General of Budget Financing and Risk Management (DJPPR) of the Ministry of Finance announced in the official statement.

There will be six series of government sukuk that will be offered, consisting of one series of SPN-S and five series of PBS. The SPN-S series will be issued with a discount rate, while PBS series will be offered with a yield rate of 5.75% to 6.75%.

The underlying asset of this sukuk auction is the project/events listed in the 2023 State Budget and other state assets. The auction will be an open auction that uses a multiple price scheme.

All investors may submit their bids in the auction. “However, in its implementation, the bid submission should be placed through the main dealers that have been authorized by the Ministry of Finance,” the DJPPR of the Ministry of Finance further added. (KR/ZH)