Finance Ministry Targets Rp 36 Trillion in State Securities Auction Next Week

Indonesia's Ministry of Finance is preparing to conduct an auction for State Securities (Surat Utang Negara - SUN) on Tuesday, June 23, 2026, aiming to raise Rp 36 trillion. This move is part of the government's strategy to finance a portion of the 2026 State Budget (APBN).

The upcoming auction will present nine series of SUN, with coupon rates varying between 5.87500% and 7.12500%. The nominal value per unit is Rp 1 million. In the previous auction on June 9, 2026, the government received bids totaling Rp 46.6 trillion and ultimately absorbed Rp 26.35 trillion.

"The government will conduct SUN auctions in rupiah to fulfill part of the financing target in the 2026 APBN," stated an announcement on the official website of the Directorate General of Debt Management and Risk of the Ministry of Finance. The nine series include new issuances (SPN01260725, SPN03260923) and reopenings of existing series (SPN12270610, FR0109, FR0108, FR0106, FR0107, FR0102, and FR0105).

The lowest coupon rate of 5.87500% is offered on the FR0109 series, maturing on March 15, 2031. The highest coupon rate of 7.12500% is available on the FR0106 and FR0107 series, which mature on August 15, 2040, and August 15, 2045, respectively. Investor interest and absorption in the prior auction were noted as lower compared to earlier auctions.

The issuance of government bonds is a key component of budget financing and aims to cover the state budget deficit for the current year, which is projected at Rp 689.1 trillion. According to Law No. 17 of 2025 concerning the State Budget for the fiscal year 2026, the target for debt financing this year is Rp 832.2 trillion, an increase from the previous year's target of Rp 775.9 trillion.