Meet The Financing Target Of The 2022 State Budget, Government Auctions SUN With A Maximum Target Of IDR 22.5 Trillion Next Week

Illustration. (Photo: Doc. Antara)

JAKARTA - The government is still auctioning off state debt securities (SUN) as part of meeting the 2022 state budget (APBN) financing target. This time, the SUN auction will take place on Tuesday, July 5.

Citing a statement from the Ministry of Finance's SUN Directorate, Thursday, June 30, the government will auction seven series of SUNs. Among them, SPN03221005, SPN12230330, FR0090, FR0091, FR0093, FR0092, and FR0089.

From this series of SUNs, the government has an indicative target of Rp. 15 trillion with a maximum target of Rp. 22.5 trillion.

In detail, the SPN03221005 and SPN12230330 series have discount coupons. Meanwhile, FR0090 with a coupon of 5.1255, FR0091 and 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.

For information, the sale of 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.

As is known, the SUN auction was carried out based on the 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 the 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).