Indonesia Raises Rp 9.45 Trillion from Government Islamic Bond Auction

The Indonesian Ministry of Finance successfully raised Rp 9.45 trillion through an auction of eight series of government Islamic bonds, known as Sukuk Negara, held on June 17, 2026. This auction aimed to secure funding for the state budget.

Investor demand for the bonds totaled Rp 19.14 trillion, which exceeded the government's initial target of Rp 12 trillion. However, the amount ultimately absorbed by the government was Rp 9.45 trillion. This figure represents a portion of the financing needed to cover the projected Rp 689.1 trillion budget deficit for 2026.

The auctioned series included both reopening existing issues and new issuances, such as SPNS10082026, SPNS16122026, and PBS030, among others. The most sought-after series were SPNS01032027 and PBS030, attracting bids of Rp 5.42 trillion and Rp 4.71 trillion, respectively. The weighted average yield for the successful bids ranged between 6.75 percent and 7.21 percent, which is higher than the previous auction's yields of 6.2 percent to 6.9 percent.

This auction's performance showed a decrease in investor interest compared to a previous Sukuk auction on June 2, 2026, which saw total bids of Rp 26.04 trillion, with Rp 8.85 trillion being awarded. The issuance of government debt is a key component of Indonesia's fiscal strategy, contributing to the financing of the national budget and addressing the deficit. The government's total debt financing target for 2026 is set at Rp 832.2 trillion, an increase from the previous year's target of Rp 775.9 trillion.