Indonesia Aims to Raise $12 Trillion Rupiah from Islamic Bond Auction Next Week

Indonesia's Ministry of Finance plans to auction eight series of state Islamic bonds, known as Sukuk Negara, on Tuesday, June 2, 2026. The government aims to raise 12 trillion rupiah through this offering.

The auction will feature both existing (reopening) and new issuance series of Surat Perbendaharaan Negara-Syariah (SPN-S) and Project Based Sukuk (PBS). Yields for these bonds range from 5% to 6.875%, with PBS038 offering the highest return and PBS040 the lowest.

This initiative is part of the government's strategy to finance the 2026 state budget deficit, which is targeted at 689.1 trillion rupiah. The total debt financing for the year is projected at 832.2 trillion rupiah, an increase from the previous year's target. Despite the government's financing needs, recent sukuk auctions have seen a decline in investor interest. The May 19, 2026 auction attracted only 18.79 trillion rupiah in bids, a drop from 21.19 trillion rupiah on May 5, 2026, and significantly lower than the 33.5 trillion rupiah in bids received on April 21, 2026, when the government accepted 15 trillion rupiah.