Financial Target Of 2022 State Budget Fulfilled, Government Auctioning Seven Series Of Government Bonds Next Week: Maximum Target Of IDR 22.5 Trillion

JAKARTA - The government is again planning to conduct an auction of Government Securities (SUN) in Rupiah. The goal is to fulfill part of the financing target in the 2022 state budget (APBN).

Citing information from the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance, Thursday, July 13, there are seven series of SUNs that will be auctioned on July 19 next week. Among them, SPN03221019, SPN12230720, FR0090, FR0091, FR0093, FR0092, and FR0089.

The coupon rate offered is a discount for SPN03221019 and SPN12230720. Meanwhile, FR0090 offers 5.12 percent, FR0091 and FR0093 at 6.37 percent, FR0092 at 7.12 percent, and FR0089 at 6.87 percent.

Of the several series of SUN to be auctioned, the government has set an indicative target of IDR 15 trillion, with a maximum target of IDR 22.5 trillion.

DJPPR added 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.

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 of State Financial Policies 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).