JAKARTA. The Indonesian government will hold another auction of Government Sharia Securities (lit. Surat Berharga Syariah Negara/SBSN) or State Sukuk with an indicative target of IDR 6 trillion on August 29, 2023.

“The series to be offered are Government Sharia Treasury Notes (lit. Surat Perbendaharaan Negara–Syariah/SPN-S) and Project-Based Sukuk (PBS). It is to fulfil a portion of the financing target set in 2023 State Budget,” said Directorate General of Budget Financing and Risk Management of the Ministry of Finance.

There will be six series offered in next week’s auction. They consist of 1 SPN-S and 5 series of PBS.

The SPN-S series will be offered with a discount, while PBS will be equipped with a yield ranging from 5.37% to 6.75%.

The underlying assets for SPN-S issuance are state assets, as approved by the House of Representatives of Indonesia. Meanwhile, the underlying assets for PBS issuance is projects/activities stated in 2023 State Budget.

The sukuk auction will be held using an auction system arranged by Bank Indonesia as the auctioning agent. All parties may submit their bids in the auction through the authorised primary dealers. (KR/ZH)