Auction Of Government Securities Tomorrow, The Government Sets An Indicative Target Of Up To IDR 33 Trillion

Illustration. (Photo: Doc. Antara)

JAKARTA - The government will hold an auction of Government Securities (SUN) in rupiah currency to meet part of the financing target in the 2024 State Budget, on Tuesday, May 28. At this SUN auction, the government set an indicative target of IDR 22 trillion - IDR 33 trillion.

Citing the website of the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance, there are eight SUN series that will be auctioned from 09.00 WIB to 11.00 WIB.

The auction was carried out based on Minister of Finance Regulation Number 168/PMK.08/2019 concerning Auction of Government Securities in the Domestic Initial Market (PMK No. 168/PMK.08/2019).

Here are the details of the eight SUN series to be offered at tomorrow's auction, Tuesday, May 28:

1. SPN03240828 (New Issue) will mature on August 28, 2024 with a discount fee rate

2. SPN12250529 (New Issue) will mature on May 29, 2025 with a discount fee rate

3. FR0101 will mature on April 15, 2029 with a reward rate of 6.87 percent

4. FRSDG001 will mature on October 15, 2030 with a reward rate of 7.37 percent

5. FR0100 will mature on February 15, 2034 with a reward rate of 6.62 percent

6. FR0098 will mature on June 15, 2038 with a reward rate of 7.12 percent

7. FR0097 will mature on June 15, 2043 with a reward rate of 7.12 percent

8. FR0102 will mature on July 15, 2054 with a reward rate of 6.87 percent

At this auction, the FRSDG001 Series, which is the first Bond Sustainable Development Goals (SDGs) series, was offered through an auction in the domestic primary market. The issuance of the SDGs Bond series through this auction complements the Bond Sustainable Development Goals (SDGs) issuance program which has been carried out in the global market in 2021.

Meanwhile, the sale of the SUN will be carried out using an auction system organized by Bank Indonesia. The auction is open (open auction), using various price methods.

The auction winners who submit competitive bids will pay according to the submitted yield. The auction winners who submit non-competitive bids (non-competitive bids) will pay according to the weighted average yield (weighted average yield) of the competitive purchase bids that are declared victorious.

In addition, the Government has the right to sell the seven SUN series larger or smaller than the specified indicative amount. The SUN to be auctioned has a nominal value per unit of IDR 1 million.

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 Auction Participants as stipulated in PMK No. 168/PMK.08/2019.

The SBN auction will open on Tuesday, May 28, 2024 at 09.00 WIB and close at 11.00 WIB. The auction results will be announced on the same day. Meanwhile, the schedule date will be held on May 30, 2024 or 2 working days after the auction date.