SUN (Government Bonds)

SUN represents securities that form letter of acknowledgment of debt denominated in rupiah and foreign currency interest and principal payments are guaranteed by the Republic of Indonesia, in accordance with the validity period.
The shape of the SUN, among others:
  1. certificate traded or not traded in secondary market
  2. scripless (scriptless), traded or not traded in secondary market
SUN Type:
  1. Government Securities (Treasury Bill); tenor up to 12 months, interest payments are discounted (discounted paper)
  2. State Bonds (Treasury Bonds), tenor over 12 months with a coupon or interest payment by discount (zero coupon bonds)
SUN publication purposes:
  1. finance the budget deficit
  2. short-term cash shortfalls due to a discrepancy between cash flow receipts and disbursements from the account of the State Treasury in a budget year (cash-mismatch)
  3. manage the state debt portfolio
SUN management strategies:
  1. reduce refinancing risk
  2. extend the average maturity (average maturity) SUN
  3. balancing the maturity structure of bond portfolio so that harmony with the state budget development and market absorption through the issuance, redemption, repurchase and redemption of principal SUN
Risk management SUN
  1. refinancing risk
  2. Interest rate risk
  3. exchange rate risk
  4. liquidity risk
  5. operational risk

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