State Securities (SUN) Long Tenor Dipoyeksi Jadi Pilihan Investor

Head of Business Development Division HPAM Reza Fahmi (second from the right) (photo: Twitter @TuriminVanthat ·)

JAKARTA - Sukuk with a long tenor is believed to be the target of investors at next week's auction which will be held on Tuesday, October 31. The government will conduct an auction of eight sun series with an indicative target set at IDR 19 trillion IDR 28.5 trillion.

HPAM Head of Business Development Division Reza Fahmi said investors will still hunt tenors of 10 years in next week's SUN auction and remain a reference until the end of the year.

"The 10 year tenor benchmark SUN price reached its highest level in July 2023, which is 7.02 percent. However, the prospects at the end of 2023 are still positive, because the Indonesian economy is expected to be strong and resilient to external pressure," he explained to VOI, Saturday, October 28.

Reza estimates that the 10-year SUN tenor yield is predicted to drop to a level of 6.25 percent by the end of 2023.

According to Reza as a whole, the prospect of the SUN auction until the end of 2023 still depends on global and domestic developments.

Reza conveyed that the government needs to maintain macroeconomic and fiscal stability in order to finance the APBN deficit efficiently and effectively.

In addition, investors need to monitor risk factors that can affect SUN demand and yield, such as the Fed's monetary policy, the Covid-19 pandemic, inflation, the rupiah exchange rate, and others.

"This auction is estimated to still attract investors because of the stable domestic economic condition and positive Indonesia credit outlook," he said.