Government of Indonesia’s Biweekly Sukuk State Auction Raises IDR 4.995 Trillion; Falls Short of Target

The Government of Indonesia has raised IDR 4.995 trillion from its biweekly auction of State Shariah Securities (SBSN), also known as State Sukuk, held on the 23rd of February 2021, according to a statement issued by the Directorate General of Budget Financing and Risk Management (DJPPR), Ministry of Finance. The amount raised only made up around 40% of the indicative target of IDR 12 trillion.

Why it matters?

The funds obtained in the auction will be used by the Government to fulfil part of its financing target in the 2021 State Revenue and Expenditure Budget (APBN).

According to Josua Pardede, Vice President-Economist of Bank Permata, the decline in investor interest in the latest auction was due to investors seeking larger returns in the...