Fulfilling The 2022 State Budget Financing Target, The Government Again Auctions Government Bonds Next Week: Maximum Target Of IDR 22.5 Trillion

Photo: Doc. Ministry of Finance

JAKARTA - The government will conduct an auction of Government Securities (SUN) in Rupiah currency to fulfill part of the financing target in the 2022 State Budget. The plan will take place on 2 August.

Citing information from the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance, Thursday, July 28, the SUN to be auctioned consists of seven series. These include SPN03221102, SPN12230413, FR0090, FR0091, FR0093, FR0092, and FR0089.

Specifically, SPN03221102 and SPN12230413 offer discount coupons. Meanwhile, FR0090 has a coupon of 5.125 percent, FR0091 and FR0093 has a coupon of 6.375 percent, FR0092 has a coupon of 7.125 percent, and FR0089 has a coupon of 6.875 percent.

Through this auction plan, the government has an indicative target of IDR 15 trillion with a maximum target of IDR 22.5 trillion.

The auction is carried out based on Minister of Finance Regulation Number 168/PMK.08/2019 concerning Auction of Government Securities in the Domestic Primary Market (PMK No. 168/PMK.08/2019) and Minister of Finance Regulation Number 38/PMK.02/2020 concerning Implementation State Financial Policy for Handling the Corona Virus Disease 2019 (Covid-19) Pandemic and/or Facing Threats That Endanger the National Economy and/or Financial System Stability (PMK No. 38/PMK.02/2020).

He also explained that the sale of the SUN will be carried out using an auction system organized by Bank Indonesia. The auction is an open auction, using the multiple price method.

Auction winners who submit competitive bids will pay according to the submitted yield. Auction winners who submit non-competitive bids will pay according to the weighted average yield of the winning competitive bids.

The government has the right to sell the seven series of SUN for more or less than the specified indicative amount. The SUN to be auctioned has a nominal value per unit of IDR 1,000,000.

In principle, all parties, both individual and institutional investors, can submit bids in the auction. However, in practice, the submission of the purchase offer must go through the Bidder as regulated in PMK No. 168/PMK.08/2019 and PMK No. 38/PMK.02/2020.