Solid Indonesian Economy, SUN Auction Entrance Offer Reaches IDR 61.04 Trillion

JAKARTA - Director of State Debt Letter DJPPR Kemenkeu Deni Ridwan said investor interest in the auction of Government Securities (SUN) can be seen from the increase in incoming bids (incoming bids) to IDR 61.04 trillion from IDR 52.63 trillion two weeks ago.

"The stable BI rate, the positive performance of the state budget earlier this year, as well as the increase in credit growth and money liquidity in circulation into positive catalysts," he said in an official statement, quoted Wednesday, February 28.

According to Deni, these sentiments can reduce the issue of high interest rate policy for a longer time after the release of FOMC minutes and further comments from Fed officials confirming the high for longer policy.

"The Fed Fund Rate (FFR) is predicted to continue to be cut this year," he said.

The demand for dominant investors is in the tenor of 5-10 years, with the number of income bids and paid bids of 50.34 percent and 46.71 percent, respectively. Meanwhile, the largest income bids in the 5 year tenor were IDR 17.8 trillion or 29.16 percent of the total income bids and won IDR 3.31 trillion or 13.79 percent of the total paid bids.

Deni added that the participation of foreign investors also increased to IDR 10.4 trillion from IDR 4.23 trillion. The majority of foreign entry offers were in the medium-tensor SUN (5 years) series of IDR 4.34 trillion or 41.67 percent of the total incoming bids for foreign investors. Meanwhile, what was won (warded bids) was IDR 1.17 trillion or 4.87 percent of the total paid bids.

Deni conveyed that along with investor interest in the high SBN market and relatively stable SBN market conditions, the Weighted Average Yield (WAY) of state bonds won at today's SUN auction fell by 2-6 bps when compared to the previous SUN auction WAY level.

Taking into account the reasonable SBN yield in the secondary market, plans for financing needs in 2024, and the current state treasury condition, the government decided to win an offer of IDR 24 trillion.

As for the calendar for issuance of Letter B