Government Auctions 7 SBSN Series Tomorrow, Sets A Target Of IDR 12 Trillion

JAKARTA - The government will auction off State Sharia Securities (SBSN) or State Sukuk in rupiah currency on Tuesday, January 23, 2024.

In this auction, the government set an indicative target of IDR 12 trillion.

Reporting from the website of the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance, there are seven SBSN series to be auctioned, namely two series of SPN-S (State Treasury Letter - Syariah) and five PBS (Project Based Sukuk) series.

At this auction, the PBSG001 series was offered again, which is a green sukuk series offered through auctions in the domestic primary market. The issuance of the Green Sukuk series through this auction complements the Green Sukuk issuance program which has been carried out 6 times in the global market since 2018 and 6 times in the domestic market through retail green sukuk since 2019.

The PBSG001 series can also be used to support the RPIM (Macropudential Influential Financing Ratio) program for Conventional Commercial Banks, Sharia Commercial Banks, and Sharia Business Units.

Funds obtained in this auction will be used by the government to meet part of the financing target in the 2023 State Budget.

Here are the seven SBSN series that will be auctioned off on Tuesday, January 23, 2024:

1. SPN-S 09072024 (reopening) which matures on July 9, 2024 in exchange for discounts.

2. SPN-S 07102024 (reopening) which matures on October 7, 2024 in exchange for discounts.

3. PBS032 will mature on July 15, 2026 in exchange for 4.87 percent.

4. PBS030 will mature on July 15, 2028 with a reward rate of 5.87 percent.

5. PBSG001 will mature on September 15, 2049 with a reward rate of 6.62 percent.

6. PBS004 will mature on February 15, 2037 with a reward rate of 6.10 percent.

7. PBS038 will mature on December 15, 2049, with a reward rate of 6.87 percent.

The SBSN auction opens on Tuesday, January 23, 2024 at 09.00 WIB and closes at 11.00 WIB. The auction results will be announced on the same day and the date of the schedule falls on Thursday, January 25, 2024 or 2 working days after the auction date.

The SBSN auction will be carried out using an auction system organized by Bank Indonesia as an SBSN Auction Agent. The auction is open (open auction) and uses various price methods.

The auction winners who bid for competitive purchases will pay according to the submitted yield.

The auction winner who submits a non-competitive purchase offer will pay according to the weighted average yield (weighted average yield) from a competitive purchase offer that is declared victorious.

In addition, the SBSN SPN-S series auction will be issued using the Ijarah Sale and Lease Back contract based on the fatwa of the National Sharia Council Indonesian Ulema Council (DSN-MUI) number 72/DSN-MUI/VI/2008.

Meanwhile, SBSN PBS series uses the Ijarah Asset to be Leated contract based on the DSN-MUI fatwa number 76/DSN-MUI/VI/2010.