JAKARTA – The Indonesian government is set to hold an auction for sovereign Sharia-compliant securities, known as Sukuk Negara (SBSN), on Tuesday, June 2, 2026. The auction will feature a mix of new issuances and re-openings, including series SPNS13072026, SPNS23112026, SPNS01032027 (new issuance), as well as PBS030, PBS040, PBS034, PBS005, and PBS038 (re-openings).
For this auction, the government has set an indicative target of Rp 12 trillion. However, the total awarded amount may reach up to 200% of the indicative target, potentially peaking at Rp 24 trillion depending on market conditions.
Market analysts at BRI Danareksa Sekuritas expressed optimism regarding the upcoming issuance. In a research note released on Tuesday, the firm projected total incoming bids to range between Rp 20 trillion and Rp 30 trillion, with a bid-to-cover ratio expected to hover between 1.67x and 2.50x.
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The auction will be conducted through the Directorate General of Budget Financing and Risk Management at the Ministry of Finance, utilizing the electronic auction system managed by Bank Indonesia, which serves as the official SBSN Auction Agent. The process will follow an open auction format using a multiple-price method.
While participation is open to both individual and institutional investors, all bids must be submitted through Primary Dealers officially approved by the Ministry of Finance. These entities—including Primary Dealers for SBSN, Bank Indonesia, and the Indonesia Deposit Insurance Corporation—are required to operate under the guidelines stipulated in Minister of Finance Regulation No. 195/PMK.08/2020 regarding the auction of sovereign Sharia securities in the domestic primary market.
Regarding pricing, successful bidders who submit competitive bids will pay the yield they proposed. Conversely, those whose non-competitive bids are accepted will pay the weighted average yield derived from the successful competitive bids.
The government retains the right to adjust the total amount awarded, either higher or lower than the initial target. The bidding window will open at 09:00 WIB and conclude at 11:00 WIB on June 2, 2026. Official results will be announced later the same day, with settlement scheduled for June 4, 2026 (T+2).
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The issuance process adheres to strict Sharia principles. The SPN-S series is issued under the Ijarah Sale and Lease Back contract, based on the DSN-MUI Fatwa No. 72/DSN-MUI/VI/2008. Meanwhile, the PBS series utilizes the Ijarah Asset to be Leased contract, aligned with DSN-MUI Fatwa No. 76/DSN-MUI/VI/2010.
The underlying assets for the SPN-S series consist of state-owned property (BMN) that has received parliamentary approval and meets the requirements outlined in Ministry of Finance Regulation No. 99/PMK.08/2021. For the PBS series, the underlying assets comprise projects and activities funded by the 2026 State Budget (APBN), as authorized by Law No. 17 of 2025, complemented by state-owned assets, including green projects.
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Summary
The Indonesian government is conducting an auction for sovereign Sharia-compliant securities (Sukuk Negara) on June 2, 2026, with an indicative target of IDR 12 trillion. The auction includes both new issuances and re-openings of various series, with the total awarded amount potentially reaching up to IDR 24 trillion depending on market conditions. Market analysts project strong demand, with estimated bids ranging between IDR 20 trillion and IDR 30 trillion.
The auction will follow an open, multiple-price format managed by the Ministry of Finance through Bank Indonesia’s electronic system. Participation is open to institutional and individual investors through approved Primary Dealers, with the settlement scheduled for June 4, 2026. All issuances strictly adhere to Sharia principles, utilizing underlying assets such as state-owned property and projects funded by the 2026 State Budget.