JAKARTA. The Indonesian government is gearing up for the auction of Government Sharia Securities (lit. Surat Berharga Syariah Negara/SBSN) or State Sukuk on next Tuesday (7/2), aiming to raise IDR 14 trillion.

There will be two series of state sukuk offered in this upcoming rounds of auction, consisting of Sharia Treasury Notes (lit. Surat Perbendaharaan Negara-Syariah/SPN-S) and Project-Based Sukuk (PBS). “It is issued 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 their statement.

The yield for SPN-S series is in the form of discounts, while PBS series have varied yields. PBS036 has a yield of 5.375%, PBS003 6%, PBS037 of 6.875%, PBS034 of 6.5%, and PBS033 of 6.75%.

The auction of state sukuk will commence at 9 AM WIB and end two hours later at 11 AM WIB. The result of this auction will be announced on the same day, on February 7, 2023, while the settlement date follows on February 9, 2023.

The underlying assets for this SPN-S are state assets, which have been approved by House of Representatives of Indonesia (DPR RI) and met the requirement stated in the Minister of Finance Regulations No.205/PMK.08/2017. Meanwhile, the underlying assets for PBS series are projects/activities included in the 2023 State Budget. (KR/ZH)