The government is scheduled to hold a sukuk auction today, with an issuance target of Rp12tn, unchanged from the previous auction. Securities on offer include SPNS tenors of 1-month, 6-month, and 9-month, as well as PBS030 (2.1-year), PBS040 (4.4-year), PBSG002 (7.3-year), PBS034 (13-year), and PBS038 (23.5-year). We expect demand to strengthen further, with total incoming bids projected at around Rp29tn (range: Rp24tn 34tn), compared with Rp26tn at the previous sukuk auction on 2-Jun.<\/p>\n\n\n\n
Sukuk Auction Result Recap (2-Jun): Demand Rebounds, but Issuance Falls Below Target.<\/strong> Demand at the 2-Jun sukuk auction rebounded strongly, with total incoming bids rising 38.6% to Rp26.0tn from Rp18.8tn at the previous auction on 19-May. The result was broadly in line with our expectation and more than double the government’s Rp12tn issuance target. Demand improved across both SPNS and PBS instruments, although PBS series continued to dominate, accounting for 61.0% of total bids. The most sought-after securities were the 9-mo SPNS (Rp5.3tn), 2.1-yr PBS030 (Rp5.1tn), and 23.5-yr PBS038 (Rp3.4tn), highlighting investor interest in both short- and long-duration instruments.<\/p>\n\n\n\n Despite the stronger demand, the government awarded only Rp8.85tn, below both its Rp12tn issuance target and the Rp12tn issued at the previous sukuk auction. The government also shifted issuance toward shorter maturities, with SPNS accounting for 85.3% of total awards, significantly higher than the YTD average of 41.0%. As a result, the weighted average tenor shortened sharply to 2.1 years from 10.5 years previously, while the weighted average cost of funds rose to 6.56% from 6.48%, reflecting the higher yield environment. Year-to-date, total government bond issuance has reached Rp849.2tn, equivalent to 54.2% of the FY2026 gross issuance target.<\/p>\n\n\n\n Investor Breakdown (2-Jun): Bank Indonesia Is the Largest Buyer at the Latest Sukuk Auction.<\/strong> The 2-Jun sukuk auction continued to be dominated by domestic investors. Based on DMO bond flow data and our estimates, Bank Indonesia was the largest buyer, absorbing around Rp4.1tn of the issuance, up from Rp3.6tn at the previous sukuk auction on 19-May and slightly above the year-to-date average of Rp3.5tn per auction. Onshore banks were estimated to be the second-largest buyers, with net purchases of approximately Rp2.9tn, equivalent to 33.2% of total issuance. They were followed by mutual funds (9.8%), insurance companies and pension funds (8.4%), other domestic investors (1.8%), retail investors (0.3%), and foreign investors (0.2%). Year-to-date, onshore banks have remained the dominant investors in the sukuk primary market, with cumulative net purchases reaching Rp58.9tn, equivalent to 44% of total sukuk issuance. Bank Indonesia has also remained a key source of demand, supported by consistent participation from other domestic investor groups.<\/p>\n\n\n\n Including primary market purchases (both auction and private placements), secondary market transactions, and sukuk maturities, onshore banks remained the largest net buyers of sukuk, with cumulative net purchases of Rp34.4tn year-to-date. Bank Indonesia and other domestic investors followed with net purchases of Rp33.4tn and Rp20.2tn, respectively, based on DMO bond flow data with settlement on 12-Jun-2026.<\/p>\n\n\n\n Sukuk Auction Preview (17-Jun): Demand Expected to Strengthen Further.<\/strong> We expect demand at today’s sukuk auction to improve further, with total incoming bids projected at around Rp29tn (range: Rp24tn 34tn), compared with Rp26tn at the previous sukuk auction on 2-Jun. The expected improvement in demand is supported by several factors. First, banking system liquidity remains ample, providing a supportive backdrop for primary market demand. Second, although there are no government bond maturities this week, investors will receive around Rp26.9tn in coupon payments, which could support reinvestment demand. Third, improving market sentiment, a stronger rupiah, and continued foreign interest in local-currency government bonds may also support demand for sukuk securities.<\/p>\n\n\n\n We forecast the fair yields for the sukuk series to be auctioned today as follows: 6.70% (range: 6.65-6.75%) for 1-mo SPNS, 6.95% (range: 6.90-7.00%) for 6-mo SPNS, 7.10% (range: 7.05-7.15%) for 9-mo SPNS, 7.05% (range: 7.00-7.10%) for 2.1-yr PBS030, 7.04% (range: 6.99-7.09%) for 4.4-yr PBS040, 7.05% (range: 7.00-7.10%) for 7.3-yr PBSG002, 7.06% (range: 7.01-7.11%) for 13-yr PBS034, and 7.10% (range: 7.05-7.15%) for 23.5-yr PBS038.<\/strong><\/p>","protected":false},"excerpt":{"rendered":" The government is scheduled to hold a sukuk auction today, with an issuance target of Rp12tn, unchanged from the previous […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[7],"tags":[],"class_list":["post-6946","post","type-post","status-publish","format-standard","hentry","category-market-research"],"_links":{"self":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts\/6946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/comments?post=6946"}],"version-history":[{"count":1,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts\/6946\/revisions"}],"predecessor-version":[{"id":6947,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts\/6946\/revisions\/6947"}],"wp:attachment":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/media?parent=6946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/categories?post=6946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/tags?post=6946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}