Indonesia to Sell 12 trln of Rupiah-Denominated Government Bonds on Tuesday
The Indonesian government will offer rupiah-denominated government bonds (Surat Utang Negara or SUN) to investors between 10:00 and 12:00 am on Tuesday (29/03). The bond sale has an indicative target of IDR 12 trillion (approx. USD $909 million) but this target can be up-sized to IDR 18 trillion. Tomorrow's bond sale, proceeds of which are to be used to finance Indonesia's 2016 State Budget, involves four series (SPN12170302, FR0056, FR0073, and FR0072). The tender is open to both institutional investors and individual investors.
Robert Pakpahan, head of the debt office within Indonesia's Finance Ministry, said the bond sale will be conducted by Bank Indonesia through an open auction, using the multiple price method. Competitive bids will receive a yield in line with the bid, while non-competitive bidders receive a price that is the average bid price of all competitive bids (weighted average yield). He added the nominal value of these bonds are IDR 1 million per piece.
Government Bonds Issuance (SUN) - 29 March 2016:
| Series | Coupon | Due Date |
| SPN12170302 | n.a. | 02 March 2017 |
| FR0056 | 8.375% | 15 September 2016 |
| FR0073 | 8.75% | 15 May 2031 |
| FR0072 | 8.25% | 15 May 2036 |
Source: Investor Daily
Up to 24 March 2016, the government of Indonesia has sold a total of IDR 244.12 trillion (approx. USD $18.5 billion) worth of government debt paper, or 45 percent of its full-year target of IDR 542.5 trillion. The government's fiscal deficit in 2016 is targeted at 2.15 percent of gross domestic product (GDP).
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