Government Targets Rp12 Trillion from State Sukuk Auction This Week

JAKARTA - The government is targeting funds of Rp12 trillion through an auction of State Sharia Securities (SBSN), or state sukuk, scheduled for Tuesday (21/4/2026). This auction forms part of the strategy to finance the 2026 State Revenue and Expenditure Budget (APBN). The Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance stated that the indicative target remains flexible. “Participation in the auction can be undertaken by individual or institutional investors through appointed Primary Dealers. Additionally, Bank Indonesia (BI) and the Deposit Insurance Corporation (LPS) may also participate in accordance with applicable regulations,” read a written statement from the Ministry of Finance on Monday (20/4/2026). The auction will offer eight series of sukuk, comprising three series of Sharia State Treasury Bills (SPN-S) and five series of Project Based Sukuk (PBS). All series offered are reopenings with varying maturities, from short-term in June 2026 to long-term in December 2049. One of the instruments being re-auctioned is the Green Sukuk series PBSG002. This instrument is part of the government’s commitment to funding environmentally friendly projects, while continuing the issuance of green sukuk previously conducted in both global and domestic markets. The auction will be conducted openly using the multiple price method, with Bank Indonesia acting as the auction agent. The bidding process will open at 09.00 WIB and close at 11.00 WIB, with results announced on the same day. Transaction settlement is scheduled for 23 April 2026. In its issuance, the government employs Sharia contract schemes in the form of Ijarah Sale and Lease Back for SPN-S series and Ijarah Asset to be Leased for PBS series, which comply with the fatwa of the National Sharia Council of the Indonesian Ulema Council (DSN-MUI). The underlying assets of the sukuk derive from State-owned Goods as well as projects in the 2026 APBN that have received approval from the House of Representatives (DPR). The government emphasises that it retains flexibility in determining the final issuance amount, taking into account financing needs and financial market dynamics.