Government Issues Private Placement SUN IDR 307.11 Billion Special PPS

JAKARTA - The Ministry of Finance (Kemenkeu) issued a state debt (SUN) by means of a private placement of IDR 307.11 billion in the context of placing funds for the taxpayer's Voluntary Disclosure Program (PPS).

Quoting Antara, the Directorate General of Financing and Risk Management of the Ministry of Finance noted that there were two SUN series issued, namely FR0099 with a value of Rp259.58 billion and USDFR0003 worth 3.19 million US dollars or equivalent to Rp47.53 billion.

The SUN issuance transaction was carried out on May 22, 2023, but the recording of the results of the new transaction was carried out on May 25, 2023.

The FR0099 series has a coupon of 6.4 percent, while USDFR0003 has a 3 percent coupon. Both SUNs have a fixed rate or the coupon rate given does not change until they are due.

The two will mature on January 15, 2029 and January 15, 2032, respectively. Both SUN series can be traded (tradable) in the secondary market.

Meanwhile, the price (yield) set in the transaction is 6.15 percent for FR0099 and 4.43 percent for USDFR0003.

The implementation of the private placement of SUN for PPS is carried out based on the Minister of Finance Regulation (PMK) Number 51/PMK.08/2019, PMK Number 38/PMK.02/2020, and PMK Number 196/PMK.03/2021.

In accordance with the provisions in PMK 196/PMK.03/2021, in terms of taxpayers investing clean assets in state securities (SBN), it is carried out with several provisions. First, done through the main dealer by means of private placement in the primary market with the provisions and requirements set by the government.

The second provision is that investment in SBN in US dollars can only be made by taxpayers who disclose assets in foreign currency. Third, the main dealer is required to report SBN transactions in the context of PPS to the Directorate General of Taxes at the Ministry of Finance.