Government Issues Private Placement SUN For Taxpayers Worth IDR 1.34 Trillion

JAKARTA - The government issued Government Securities (SUN) in a private placement manner in the context of placing funds on the taxpayer's Voluntary Disclosure Program (PPS) amounting to Rp1.34 trillion.

The nominal includes the issuance of FR0099 amounting to Rp831.98 billion and USDFR0003 worth 33.99 million US dollars or equivalent to Rp509.85 billion, whose transactions have been made on March 20, 2023.

In an official statement, quoted from Antara, Wednesday, April 5, the Directorate General of Financing and Risk Management of the Ministry of Finance (Kemenkeu) revealed that the implementation of private placement transactions was carried out based on the Regulation of the Minister of Finance (PMK) Number 51/PMK.08/2019, PMK Number 38/PMK.02/2020, and PMK Number 196/PMK.03/2021.

The two SUNs are series of state bonds that have fixed coupons aka Fixed Rate (FR) and can be traded on the secondary market.

FR0099 has 6.4 percent coupon, while USDFR0003 has 3 percent coupon. The price or yield that has been set for these two SUN series is 6.55 percent for FR0099 and 4.95 percent for USDFR0003.

The FR0099 will mature on January 15, 2029 and USDFR0003 on January 15, 2032.

In accordance with the provisions in PMK 196/PMK.03/2021, in terms of taxpayers investing clean assets in Government Securities (SBN), it is carried out with several provisions.

The first provision is carried out through the main dealer by means of a private placement in the primary market with the provisions and requirements set by the government.

Then, the second provision is that SBN investment in US dollars can only be made by taxpayers who disclose assets in foreign currency. Third, the main dealer is required to report SBN transactions in the context of PPS to the Directorate General of Taxes at the Ministry of Finance.