JAKARTA. The Indonesian government is arranging the next auction of Government Sharia Securities (lit. Surat Berharga Syariah Negara/SBSN) or State Sukuk on next Tuesday (4/7), setting an indicative target of IDR 6 trillion.

There are two types of state sukuk offered in this auction session: Sharia Treasury Notes (lit. Surat Perbendaharaan Negara – Syariah/SPN-S) and Project Based Sukuk (PBS). There will be one series of SPN-S and 5 series of PBS.

The yield offered for SPN-S is in the form of discounts, while the yield for PBS series ranges from 5.37% to 6.75%. The underlying assets for all series of sukuk are projects or activities set in the 2023 State Budget, as well as state-owned assets.

The sukuk auction will adopt the tender system by Bank Indonesia (BI), as the auctioning agent. The auction will be an open auction using multiple price scheme. All parties may submit their bids in the auction through primary dealers that are authorised and approved by the Ministry of Finance.

According to IDNFinancials data, the government had previously auctioned state sukuk on June 20, 2023. In this round of auction, the incoming bids for 6 series of state sukuk were reported reaching IDR 41.38 trillion, while the awarded amount clocked up to IDR 7 trillion. (KR/ZH)