JAKARTA. The Indonesian government will once again hold an auction of Government Securities (lit. Surat Utang Negara/SUN) with an indicative target of IDR 23 trillion on next Tuesday (28/2).

The auction will be held based on the Minister of Finance Regulations No.168/PMK.08/2019 regarding the Auction of Government Securities in the Primary Domestic Market, as well as Minister of Finance Regulations No.38/PMK.02/2020 regarding Nation Financial Implementation for COVID-19 Pandemic Response and Financial System Stability.

In said auction, seven series of SUN will be offered, consisting of two series of Government Treasury Notes (lit. Surat Perbendaharaan Negara/SPN) and five FR series of Government Bonds (lit. Obligasi Negara/ON).

The coupons attached to the SPN series are discounts, while coupons for FR series were opened starting from 6.38% to 7.13%. The allocation of non-competitive purchase for SON series is set to a maximum of 50% of total awarded amount. Meanwhile, the allocation for FR series is set to a maximum of 30% of total awarded amount.

The SUN auction will be held using Bank Indonesia’s auction system. It will be an open auction with a multiple price scheme. The tender participants may submit their bids through specified auction members.

Based on IDNFinancials record, Indonesian government had previously held a SUN auction on February 14, 2023. The amount of incoming bids in said auction clocked up to IDR 55.98 trillion, while its awarded amount reached IDR 20 trillion. (KR/ZH)