Fulfilling Budget Financing Target, Government Eyes Up To IDR 30 Trillion Funds From Debt Auction Next Week

Illustration. (Photo: Doc. Antara)

JAKARTA - The government through the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance plans to auction state debt securities (SUN) on Tuesday, March 15. Through this SUN auction, the funds obtained are to fulfill part of the financing target in the 2022 state revenue and expenditure budget (APBN).

Quoting the DJPPR statement, Thursday, March 10, the SUN auction will open starting at 09.00 WIB and close at 11.00 WIB. The indicative target is IDR 20 trillion, with a maximum target of IDR 30 trillion.

"The sale of the SUN will be carried out using an auction system organized by Bank Indonesia," wrote the DJPPR.

DJPPR detailed that the SUN to be auctioned were SPN03220615 and SPN12230303 with discount coupons. In addition, there are FR0090 with a coupon of 5.125 percent, FR0091 with a coupon of 6.375 percent, FR0093 with a coupon of 6.375 percent, FR0092 with a coupon of 7.125 percent, and FR0089 with a coupon of 6.875 percent.

DJPPR added that the auction is an open auction and uses multiple price methods. "The auction winners who submit competitive bids will pay according to the yield submitted," said DJPPR.

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

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

In principle, all parties, both individual and institutional investors, can submit bids in the auction.