Government Auctions SBSN, Indicative Target Of IDR 10 Trillion On Tuesday, March 11

JAKARTA - The government will hold an auction of State Sharia Securities (SBSN) or Sukuk Negara on Tuesday, March 11, 2025. Meanwhile, the government set an indicative target of IDR 10 trillion at the sukuk auction.

Based on information from the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance, there are seven (7) Sukuk series that will be auctioned, namely two series of SPN-S (State Treasury Letter - Syariah) and five PBS (Project Based Sukuk) series.

The SBSN auction will open on Tuesday, March 11, 2025 at 09.00 WIB and close at 11.00 WIB. The auction results will be announced on the same day. Meanwhile, the schedule will be held on March 13, 2025 or 2 working days after the auction date.

On the other hand, the SBSN auction will be held using an auction system organized by Bank Indonesia as an SBSN Auction Agent.

Then, the auction is open (open auction) and uses a multi-multile price method and in principle, all parties, both individual and institutional investors, can submit bids in the auction.

However, in its implementation, the submission of the purchase offer must go through the Main Dealer which has received approval from the Ministry of Finance.

The Main SBSN Dealers, Bank Indonesia, and Deposit Insurance Corporations can submit SBSN auction offers by referring to the provisions of the Minister of Finance Regulation Number 195/PMK.08/2020 concerning Auction of State Sharia Securities in the Domestic Initial Market.

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

In addition, the winner of the auction that submits a non-competitive purchase offer will pay according to the weighted average yield (weighted average yield) of the competitive purchase bid that is declared victorious.

In addition, the Government has the right to sell the SBSN series larger or smaller than the specified indicative target.

The funds obtained in this sukuk auction will later be used by the government to meet part of the financing target in the 2025 State Budget.

Here are the seven Sukuk series that will be auctioned off on Tuesday, March 11.

1. SPNS01092025 (reopening) will mature on September 1, 2025 with a discount fee rate.

2. SPNS08122025 (new issuance) will mature on December 8, 2025 with a discount fee rate.

3. PBS003 (reopening) will mature on January 15, 2027 with a reward rate of 6.00 percent

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

5. PBS034 (reopening) will mature on June 15, 2039 with a reward rate of 6.50 percent

6. PBS039 (reopening) will mature on July 15, 2041 with a reward rate of 6.62 percent

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

Provisions regarding the implementation of the auction include calculating the value of the telmen stipulated in the Minister of Finance Regulation Number 195/PMK.08/2020 concerning Auctions for State Sharia Securities in the Domestic Initial Market and Regulation of the Director General of Financing and Risk Management Number 6/PR/2020 concerning Procedures for Application for Purchase and Calculation of Setelment Prices for Transactions for Issuance of State Sharia Securities in Rupiah Currency at the Domestic Initial Market.

The SBSN SPN-S series will be issued using the Ijarah Sale and Lease Back contract based on the fatwa of the National Sharia 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.

Underlying assets for the issuance of the SPN-S series use State Property which has received DPR RI approval and has met the requirements as stipulated in Article 2 paragraph 4 of the Minister of Finance Regulation number 99/PMK.08/2021 concerning Amendments to the Regulation of the Minister of Finance Number 205/PMK.08/2017 concerning the Use of State Property as the Basis for the Issuance of State Sharia Securities.

Meanwhile, the underlying asset for the issuance of the PBS series uses projects/activities in the 2025 APBN which has received DPR RI approval through Law Number 62 of 2024 concerning the State Budget for Fiscal Year 2025 and partly in the form of State Property, including green projects/assets.