The auction will be held on Tuesday, March 15, 2011, with an indicative target of 1.0 trillion rupiahs, yjr Finance Ministry announced on Monday.
The auction of the government bonds will be conducted through an system devised by Bank Indonesia as the agent of SBSN auctions. The auction will be open and use the multiple price method.
On the principle, all parties, both individual investors and institutions, shall be able to offer bids. However, the bids shall be conducted through the registered auction participants mentioned above which have obtained the authority from the Ministry of Finance.
According to the Regulation of the Minister of Finance Number 11/PMK.08/2009 dated February 2, 2009, the auction is participated by the participants through proposing competitive and non-competitive bids, and by Indonesia Deposit Insurance Corporation (LPS) through proposing non-competitive bids.
The participants, which propose the bid for and on behalf of themselves, shall only be able to offer a competitive bid.
Those who offer a competitive bid shall pay according to the yield proposed. Those who offer a non-competitive bid shall pay according to the weighted average yield of non-competitive bidding won.
Non-competitive allocation for each series is 30 percent (thirty per one hundred) of total nominal amount won.
The Finance Ministry said that it has the right to sell the four SBSNs larger or smaller than the indicative amount. The settlement will be conducted through BI-SSSS (Bank Indonesia-Scripless Securities Settlement System) and shall only be held with the auction participants.(*)
Editor: Aditia Maruli Radja
Copyright © ANTARA 2011
