There is an First SUN Auction in 2022 today, the target is IDR 25 T

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SUN Auction Plan January 4, 2022

Jakarta, ONENEWS.MY.ID – The government through the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance will conduct another auction of Government Securities (SUN) in rupiah currency to fulfill part of the financing target in the 2022 State Budget.

The first auction in 2022 which will be held on Tuesday (4/1/2022) today is the auction of Government Securities (SUN), with an indicative target of IDR 25 trillion.

The auction was conducted based on the Minister of Finance Regulation Number 168/PMK.08/2019 concerning Auction of Government Securities in the Domestic Primary Market (PMK No. 168/PMK.08/2019).

The auction is also in accordance with Minister of Finance Regulation Number 38/PMK.02/2020 concerning the Implementation of State Financial Policies for Handling the 2019 Corona Virus Disease (Covid-19) Pandemic and/or Facing Threats That Endanger the National Economy and/or Financial System Stability (PMK No. 38/PMK.02/2020).

As for the main points terms and conditions The SUN to be auctioned are as follows:

1. Auction Date: Tuesday, January 4, 2022, opens at 09.00 WIB and closes at 11.00 WIB

2. Settlement Date: Thursday, January 6, 2022

3. Indicative Target: IDR 25,000,000,000,000.00 (twenty five trillion Rupiah)

4. Maximum Target: IDR 37,500,000,000,000.00 (thirty seven trillion five hundred billion Rupiah)

SUN Auction Plan January 4, 2022

The DJPPR stated that the sale of the SUN will be carried out using an auction system organized by Bank Indonesia (BI).

“The auction is open (open auction), using the multiple price method (multiple price). Auction winners who submit competitive bids (competitive bids) will pay according to yield submitted,” wrote DJPPR, in his statement, quoted on Monday (3/1/2022).

Auction winners who submit non-competitive bids (non-competitive bids) will pay according to the yield (yield) weighted average (weighted average yield) of the winning competitive bidding bid.

The government has the right to sell the seven series of SUN for more or less than the specified indicative amount. The SUN to be auctioned has a nominal value per unit of IDR 1 million.

“In principle, all parties, both individual and institutional investors, can submit a purchase offer (bids) in the auction. However, in practice, the submission of the purchase offer must go through the Bidder as regulated in PMK No. 168/PMK.08/2019 and PMK No. 38/PMK.02/2020,” wrote the DJPPR.

At the last auction in 2021, namely the auction of State Sharia Securities (SBSN) which was held on November 2, 2021, the nominal value of SBSN won by the government is IDR 4 trillion, or in accordance with the indicative target set by the previous government. In the auction process, incoming bids that came in reached Rp 48.7 trillion.

As for the last SUN auction in 2021 which was held on October 26, 2021, the Government won the auction in the amount of Rp. 8 trillion, also in accordance with the indicative target set by the previous government. Whereas incoming bids who entered reached Rp. 69.5 trillion

Until the end of November 2021, state revenues had reached Rp 1,699.4 trillion or 97.5% of the target of Rp 1,743.6 trillion. This revenue grew 19.4% year-on-year (year-on-year/YoY).

This positive note made the government succeeded in reducing the debt withdrawal which was quite significant up to Rp 263.5 trillion. Debt in this case comes from the issuance of Government Securities (SBN).

“The state budget is starting to recover with state revenues experiencing an extraordinary strengthening so that this year we reduce our debt issuance to Rp. 263 trillion,” said Finance Minister Sri Mulyani at the KiTa State Budget press conference last Tuesday (12/21/2021).

Furthermore, the reduction in the issuance of SBN contributed to a much lower budget deficit compared to the same period the previous year.

In November 2020 the deficit reached 5.73% of Gross Domestic Product (GDP) or Rp. 885.1 trillion, and in November 2021 it fell to 3.6% of GDP or Rp. 611 trillion.

This also makes budget financing even less. November 2020 budget financing reached IDR 1,101.5 trillion and until the end of last month it was only IDR 642.6 trillion.

“This is a story about economic recovery and the state budget which has begun to recover due to Covid-19 which has hit everyone, social, economic and the state budget,” he explained.

[Gambas:Video CNBC]



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