JAKARTA. Indonesian government will hold an auction of Sharia Government Securities (lit. Surat Berharga Syariah Negara/SBSN) or State Sukuk on November 7, 2023, with an indicative target of IDR 9 trillion.

There are 6 series of sukuk offered in this auction. The securities consist of 1 series of Sharia Treasury Notes (lit. Surat Perbendaharaan Negara Syariah/SPN-S) and 5 series of Project-Based Sukuk.

The yield offered for SPN-S series is discounts. Meanwhile, the yield attached to PBS series ranges from 5.37% to 6.87%. The underlying assets in this auction are projects or events in 2023 State Budget and state assets.

The auction will be held using a system arranged by Bank Indonesia as the execution agent. The auction is an open auction and uses a multiple price scheme. All parties may submit their bids through primary dealers authorised by the Ministry of Finance.

According to IDNFinancials data, Indonesian government had previously held a state sukuk auction on October 24, 2023. In said auction, the bids recorded reached IDR 8.25 trillion, while the awarded amount was IDR 2.03 trillion. (KR/ZH)