Finance Ministry Indonesia Conducts Government Bond Auction
The Finance Ministry of Indonesia is conducting a rupiah-denominated Government Debt Securities (SUN) auction on Tuesday (27/09). The auction opened at 10:00 am local Jakarta time and will close at 12:00 pm. The indicative target of the government is set at IDR 12 trillion (approx. USD $923 million), while the maximum target is set at IDR 18 trillion (approx. USD $1.4 billion). Proceeds are used to finance the Revised 2016 State Budget.
The auction - an open one, using the multiple price method - uses the auction system organized by the nation's central bank (Bank Indonesia). Bidders can submit competitive and non-competitive bids. The winners who submitted competitive bids will pay according to their proposed yield, while the auction winners who submitted non-competitive bids will pay according to the weighted average yield of the awarded competitive bids. The Indonesian government has the right to sell the four series of SUN at larger or smaller numbers than the indicative amount that has been set. The SUNs auctioned have a nominal per unit of IDR 1 million.
Both individual and institutional investors can submit bids in the auction. However, bids will be submitted through the Auction Participants as regulated in accordance with Finance Ministry Regulation No. 43/PMK.08/2013 on the Auction of Government Debt Securities on Rupiah and Foreign Denominated in Domestic Primary Market, as amended with Finance Ministry Regulation No. 203/PMK.08/2015.
Meanwhile, the Indonesian rupiah is appreciating sharply on Tuesday (27/09). By 12:00 noon local Jakarta time the currency had strengthened 0.80 percent to IDR 12,937 per US dollar (Bloomberg Dollar Index).
Government Bond Auction 27 September 2016:
| SPN12170608 (Reopening) |
FR0061 (Reopening) |
FR0059 (Reopening) |
FR0072 (Reopening) |
|
| Maturity | 8 June 2017 | 15 May 2022 | 15 May 2027 | 15 May 2036 |
| Coupon | At Discount | 7.00000% | 7.00000% | 8.25000% |
| Allocation of non-competitive | Max. awarded is 50% of the total awarded | Max. awarded is 30% of the total awarded | Max. awarded is 30% of the total awarded | Max. awarded is 30% of the total awarded |
Source: Finance Ministry
List of Government Debt Security Auction Participants:
| A Primary Dealers |
B. Deposit Insurance Corporation (LPS) | C. Bank Indonesia |
| Citibank N.A. | ||
| Deutsche Bank AG | ||
| HSBC | ||
| Bank Central Asia | ||
| Bank Danamon Indonesia | ||
| Bank Maybank Indonesia | ||
| Bank Mandiri | ||
| Bank Negara Indonesia | ||
| Bank OCBC NISP | ||
| Bank Panin | ||
| Bank Rakyat Indonesia | ||
| Bank Permata | ||
| Bank CIMB Niaga | ||
| Bank ANZ Indonesia | ||
| Standard Chartered Bank | ||
| JPMorgan Chase Bank N.A. | ||
| Bahana Securities | ||
| Danareksa Sekuritas | ||
| Mandiri Sekuritas | ||
| Trimegah Securities |
Source: Finance Ministry