JAKARTA. Today (3/1), the government will initiate the first auction of Government Securities (lit. Surat Utang Negara/SUN) in 2023, offering seven series and aiming for an indicative target of IDR 23 trillion to IDR 34.5 trillion. The proceeds gained from this auction will contribute to some of the financing target set in the 2023 State Budget.

According to the Directorate-General of Budget Financing and Risk Management of the Ministry of Finance, these seven series consist of two series of new issuance of Government Treasury Notes (lit. Surat Perbendaharaan Negara/SPN), which are SPN03230405 and SPN12240104, and five reopened series of government bonds, comprising FR0095, FR0096, FR0098, FR0097, and FR0089.

SPN03230405 and SPN12240104 will be offered with a discount and will mature on April 5, 2023, and January 4, 2024, respectively. Meanwhile, FR0095 has an interest rate of 6.375% and mature on August 15, 2028, and FR0096 has an interest rate of 7% and mature on February 15, 2033, while FR0098 has an interest rate of 7.125% and mature on June 15, 2038. Then, FR0097 has an interest rate of 7.125% and mature on June 15, 2043, while FR0089 has an interest rate of 6.875% and mature on August 15, 2051.

The government is entitled to sell these seven series of SUN for a higher or lower price than what has been planned. For the record, the SUN that will be auctioned has a value of IDR 1 million per unit. (AM/ZH)