The auction - an open one, using the multiple price method - uses the auction system organized by the nation's central bank (Bank Indonesia). Bidders can submit competitive and non-competitive bids. The winners who submitted competitive bids will pay according to their proposed yield, while the auction winners who submitted non-competitive bids will pay according to the weighted average yield of the awarded competitive bids. The Indonesian government has the right to sell the four series of SUN at larger or smaller numbers than the indicative amount that has been set. The SUNs auctioned have a nominal per unit of IDR 1 million.

Both individual and institutional investors can submit bids in the auction. However, bids will be submitted through the Auction Participants as regulated in accordance with Finance Ministry Regulation No. 43/PMK.08/2013 on the Auction of Government Debt Securities on Rupiah and Foreign Denominated in Domestic Primary Market, as amended with Finance Ministry Regulation No. 203/PMK.08/2015.

Meanwhile, the Indonesian rupiah is appreciating sharply on Tuesday (27/09). By 12:00 noon local Jakarta time the currency had strengthened 0.80 percent to IDR 12,937 per US dollar (Bloomberg Dollar Index).

Government Bond Auction 27 September 2016:

Maturity 8 June 2017 15 May 2022 15 May 2027 15 May 2036
Coupon At Discount 7.00000% 7.00000% 8.25000%
Allocation of non-competitive Max. awarded is 50% of the total awarded Max. awarded is 30% of the total awarded Max. awarded is 30% of the total awarded Max. awarded is 30% of the total awarded

Source: Finance Ministry

List of Government Debt Security Auction Participants:

A Primary Dealers
B. Deposit Insurance Corporation (LPS) C. Bank Indonesia
Citibank N.A.
Deutsche Bank AG
Bank Central Asia
Bank Danamon Indonesia
Bank Maybank Indonesia
Bank Mandiri
Bank Negara Indonesia
Bank Panin
Bank Rakyat Indonesia
Bank Permata
Bank CIMB Niaga
Bank ANZ Indonesia
Standard Chartered Bank
JPMorgan Chase Bank N.A.
Bahana Securities
Danareksa Sekuritas
Mandiri Sekuritas
Trimegah Securities

Source: Finance Ministry