JAKARTA. The Indonesian government will hold another auction of Government Sharia Securities (lit. Surat Berharga Syariah Negara/SBSN) or State Sukuk on May 9, 2023. The indicative target is set to IDR 9 trillion.

There will be six series of sukuk offered in this auction, consisting of one (1) series of Government Treasury Notes (lit. Surat Perbendaharaan Negara Syariah/SPN-S) and 5 series of project-based sukuk (PBS).

The yield attached to the SPN-S series is a discount, whereas PBS series will have varied profit-sharing yields, starting from 5.375% to 6.875%.

The underlying asset for those six series of sukuk is projects/activities listed in the 2023 State Budget, as well as other state assets.

The auction of state sukuk will be carried out using the system set by Bank Indonesia (BI). The auction will be an open auction that uses a multiple price scheme. All parties may submit their bids in this auction through primary dealers authorised by the Ministry of Finance.

According to IDNFinancials data, the government had held another sukuk auction on April 4, 2023. In said round of auction, the incoming bids clocked up to IDR 24.77 trillion, while the awarded amount reached IDR 9 trillion. (KR/ZH)