Indonesian Govt Secures Rp22 trillion Over Government Bonds Auction

TEMPO.CO, Jakarta - The government gained Rp22 trillion from the auction of Government Bonds or SUN on Tuesday, May 28, 2024. The total bids received were Rp47.1 trillion.

There are eight series of the Government Bonds being auctioned, including series SPN03240828, SPN12250529, FR010, FRSDG001, FR0100, FR0098, FR0097, and FR0102, through the Bank Indonesia auction system.

Based on the notes of the Director of Government Securities, several factors influenced the auction result. Investors tend to ‘wait and see’ after the release of the Federal Open Market Committee or FOMC meeting last weekend, which showed the ‘higher for longer’ policy of the US Fed. 

Additionally, the auction was influenced by geopolitical tensions in the Middle East and the Russia-Ukraine war. However, investor interest in yesterday’s auction was still quite high due to the positive domestic economy and the April performance of the State Budget.

The government was again offering the Sustainable Development Goals (SDGs) Bond FRSDG001 series at SUN auction and received a positive response from investors with incoming bids of Rp1.63 trillion or 3.46 percent of the total bid.

The total incoming bids from foreign investors at yesterday's SUN auction was Rp6.92 trillion, a slight increase from the previous auction. The majority of incoming bids were in the medium tenor or five-year Government Bonds series amounting to Rp3.22 trillion. 

By considering reasonable yields on Government Bonds in the secondary market, planned financing needs for 2024, and the current condition of the state treasury, the Government decided to win the bid of Rp22 trillion at yesterday's SUN auction. The next auction will be held on June 11, 2024.

ILONA ESTHERINA

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