The Indonesian government, through the Ministry of Finance, is set to auction eight series of State Sharia Securities (SBSN), also known as Government Sukuk, on Tuesday, June 2, 2026. The government has set an indicative target to raise IDR 12 trillion from this issuance.
According to the Directorate General of Budget Financing and Risk Management (DJPPR) at the Ministry of Finance, the auction will feature a mix of SPN-S (State Sharia Treasury Notes) and PBS (Project Based Sukuk) instruments. The specific series on offer include SPNS13072026, SPNS23112026, and a new issuance, SPNS01032027, all of which utilize a discount yield structure. Additionally, the auction includes several reopened Project Based Sukuk series: PBS030, PBS040, PBS034, PBS005, and PBS038. Among the PBS series, PBS038 offers the highest yield at 6.87500 percent, while PBS040 features the lowest yield at 5 percent.
This upcoming auction comes against a backdrop of cooling investor appetite. Recent data from the DJPPR highlights a downward trend in market interest for state sukuk. During the previous auction on May 19, 2026, total incoming bids reached only IDR 18.79 trillion, a decline from the IDR 21.19 trillion recorded on May 5, 2026. This contraction is even more pronounced when compared to the April 21, 2026 auction, which saw robust demand with incoming bids totaling IDR 33.5 trillion, leading the government to accept IDR 15 trillion.
The primary objective of these auctions is to secure partial funding for the 2026 State Budget (APBN). While the indicative target is set at IDR 12 trillion, the government retains the flexibility to award up to 200 percent of that amount depending on market conditions. These government bond auctions are essential components of the nation’s fiscal strategy to cover the projected 2026 budget deficit of IDR 689.1 trillion.
In accordance with Law No. 17 of 2025 regarding the 2026 State Budget, the government has set a total debt financing target of IDR 832.2 trillion for the year. This represents an increase over the previous year’s target of IDR 775.9 trillion, underscoring the government’s continued reliance on the domestic bond market to fuel fiscal requirements.
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Summary
The Indonesian Ministry of Finance plans to hold a State Sharia Securities (SBSN) auction on June 2, 2026, with an indicative target of IDR 12 trillion. The auction will feature various treasury notes and project-based sukuk, including new issuances and reopenings, to help fund the 2026 State Budget. While the target is set at IDR 12 trillion, the government maintains the flexibility to adjust the final award based on market conditions.
This initiative occurs amidst a recent decline in investor demand for state sukuk, as seen in lower incoming bids during preceding auctions. The fundraising effort is part of a broader fiscal strategy to address the projected 2026 budget deficit of IDR 689.1 trillion. Under Law No. 17 of 2025, the government has set a total debt financing target of IDR 832.2 trillion for the year to support national fiscal requirements.