Glossary — Indonesia Bonds Market Directory 2026

A

Accrued Interest: number of coupons (interest) bonds calculated from since the last coupon payment until the date of settlement
Adjusted Gross Income: income on which individuals or households in calculating federal income tax.
Agen Lelang Surat Utang Negara: party appointed by the Government to implement the Government Securities Auction in Primary Market.
Agen Fiskal: designated agent to perform the registration of ownership (registry) and pay interest and principal of bonds.
Allotment: bond allocation obtained.
APBN Penyesuaian: Budget adjusted for volume as a result of changes in macroeconomic assumptions. These adjustments do not require ratification of the Act, but simply discussed with the House.
APBN Perubahan: Current year budget at the end of this period made the changes, and these changes require ratification by the government with the House in the form of the Act (Budget Amendment Act). Changes in ABPN Formerly known as the Budget-TP.
Arranger dan Agen Penjual Obligasi Negara: party appointed by the government to implement the Book-building and sales of Bonds in the primary market.
Asset to Bond Swap: exchanges between the assets managed by BPPN with state bonds issued in connection with bank recapitalization program.
Automatic Bidding System: auction bidding system automatically by means of electronic auctions are connected (on line). Bidder to enter bid and the system will automatically record and sort on the basis of chronological.
Average Maturity: average maturities of the bonds.

B

Benchmark yield curve: curves that describe the relationship between rates of return (yield) at various maturity of securities with no risk. This curve is a basic reference in the pricing of bonds and other financial assets and forming market expectations about future interest rates.
Bid-to-cover ratio: the ratio between the number of incoming bids by the number of bids won.
BI-SKRIP (Bank Indonesia-Sistem Kliring, Registrasi, Informasi dan Penatausahaan Surat Berharga): system used by Bank Indonesia to administer government bonds, which consists of (i) registration of ownership, (ii) settlement of transactions, and (iii) payment of interest and principal of Government Bonds.
Book Entry Registry (BER): bonds scripless recording system in an electronic journal.
Bookbuilding: activities of collecting subscription from investors.
Buyback: repurchase of bonds (Government Securities) before maturity.

C

Capital Gain: profits derived from the difference between selling price and buying price of a financial asset.
CAR (Capital Adequacy Ratio): is the fulfillment of the provisions of the capital adequacy of banks is currently at 8%. CAR is the ratio of capital to risk-weighted assets (RWA).
Central Registry: party responsible for keeping records of ownership of government bonds, the coupon payments and administer rights movement holdings of government bonds. Bank Indonesia is currently acting as the Central Registry.
Clean price: bond price minus accrued interest.
Code of conduct: standards of behavior which are written rules that must be obeyed by the members of a society in its activities.
Competitive bid auction: auction system in which each bidder submit the bid price (bid price) respectively.
Continuous Auction: continuous auction mechanism that will stop if there correspondence between the bid-offer.
Cost of funds: costs incurred on funds before calculated reserve requirement.
Credit Risk: risk that the issuer can not afford to pay interest and principal of the bonds at maturity. Credit risk is often also called default risk.
Cross currency swaps: exchange of two currencies or currency that is different from the agreement of both parties will return to trade at its face value at maturity.

D

Day count: number of days used in calculating the accrued interest bonds.
Debt Switching: redemption of bonds which had been circulated with other types of bonds that have maturities and /or a different coupon.
Defisit Anggaran: negative difference between government revenue and government expenditure.
Dirty price: bond prices contain accrued interest, often also called full price.
Discount Bonds (zero coupon bonds): bonds that do not give coupons or interest, sold at discount and at maturity the bonds are paid or repaid in accordance with the nominal value.
Diskonto obligasi: excess of selling price or face value over the acquisition price of bonds, excluding interest runs (accrued interest) to bond with a coupon.
Divestasi: release of ownership (equity / shares) in a company.
Due diligence: in-depth examination of an aspect of a particular institution.
Duration: the weighted average maturities of the bonds. Duration is used to measure the volatility of bonds, the smaller the duration the higher the volatility of the bond.

F

Federal tax: policies that aim to ensure that individuals, trusts, estates, and corporations are wealthy pay at least some income tax.
Financial market: financialmarkets, the markets in which short-term instruments and long-term trading, including money market and capital markets.
Fixed Rate Bonds: bonds have a fixed rate until maturity. Interest is paid every six months on the 15th of the month that has been determined.
Flat yield curve: is the bond yield curve where short term with long-term bond yields.
Floating rate bonds (variable rate bonds): bond interest rate is adjusted periodically based on the Treasury Bills interest rate or the average time deposits of certain banks. Bond variable interest rate issued by the government in order to recap the interest rate determined every three months based on 3-month SBI interest rate.
Foreign currency loan: loans in foreign currencies.
Forward foreign exchange contract: submission of a contract or agreement then a number of foreign exchange for a transaction (underlying) at a certain agreed period.

G

Gross income: individual's total income before deduction (deductions) and exceptions (exclusions).
Green sukuk: is a new Islamic bond where the proceeds are used to fund specific environmentally sustainable infrastructure projects.

H

Harga Beragam (Multiple Price): price paid by each winning bidder in accordance with its proposed offer price.
Harga indikatif: average price of government bonds on the secondary market within a period of 1 (one) week.
Harga Setelmen: price to be paid for the auction of Government Securities, which was won.
Hedge Bonds: bond interest rate determined based on the interest rate SIBOR (Singapore Interbank Offered Rate) 3 months + 2% on the principal is indexed to changes in the rupiah exchange rate against U.S. $. These bonds are intended to cover net open position (net open position) banks recap.
Holding period: the ownership of a bond which is calculated since purchase.
Humped-backed yield curve: is a curve where the yield has fluctuated.

I

Indonesia Goverment Securities Trading System: securities trading system electronically that are used in trading of Government Securities in the secondary market by traders Government Securities.
Inflasi: percentage increase in general prices of goods and services within a certain period.
Instrumen investasi pendapatan tetap (fixed income asset): securities offer a fixed income over time. In Indonesia, the securities referred to (usually bonds) offered by securities firms as fixed-income mutual fund products.
Inter Dealer Market: inter-dealer market traders Government Securities.
Interest rate swap: an agreement where two parties (called counterparties) made an agreement to exchange periodic interest payments.
Investment portfolio account (rekening portofolio investasi): accounts used to record the government bonds owned by banks in the investment portfolio / asset with its historical value (historical price).

K

Kupon: the amount of interest paid on a regular basis, expressed as a percentage of the nominal value of bonds.
Komodo Bond: is a bond denominated of rupiah (global IDR bond) that issued and listed in abroad. Komodo bonds are an intriguing alternative of financing for State Owned Enterprises (SOEs) because it mitigates foreign exchange currency risk for issuer, and simultaneously shifts it to the investors.

L

Lelang Surat Utang Negara: sales of Government Securities by way of submission of bids on a competitive basis and noncompetitive bidding in a time period that has been determined.
Loan to Deposit Ratio (LDR): ratio between the loans provided by third-party funds collected by banks.

M

Market Expected Yield: results expected by the market on a securities (eg government bonds).
Market maker (penggerak pasar): financial institution that acts as a driver of the market by providing two-way price quotations (bid and offer prices) and at all times ready to sell and buy.
Mismatch exposure: incompatibility between liabilities and bank assets.
Multiple price auction: auction system in which the winning bidder will pay the price of securities in accordance with the bid price (bid price) the filing.
Multiple Price: various pricing methods, the method of determining the winner of the auction where the price paid by each winner in accordance with its proposed offer price.

N

Negative spread: minus the difference between the cost of funds with interest income.
Non competitive bid auction: auction system in which some bidders did not submit the bid price and would receive or payon the average price of the auction results of the competitive bidders.

O

Obligasi Negara (ON): Government Securities (bonds) denominated in dollars with a coupon or a discount with the interest payment, term of more than 12 (twelve) months, and repaid at maturity for face value.
Obligasi Negara: Government Securities with a maturity of more than 12 (twelve) months with periodic interest payments and / or interest payment discount.
Open market operation: a monetary policy instrument to influence the money supply in the banking system through the sale or purchase of securities.
Outliers: term that describes the yield of commercial transactions that are significantly different from the general yield level and occurs naturally in the secondary market within a certain time.
Outright transaction: Transaction without any obligation bonds to buy or sell back the bonds. The opposite of repo transactions.
Outright: buy-sell transactions are loose without obligation bonds to buy or sell back the bonds.
Oversubscribed: a situation where the demand of new types of securities issued exceeds the amount offered. Indonesia Bond Market Directory
Over-the-Counter: Government bond markets are conducted through a trading market outside the stock exchange.

P

Paperless (scriptless): securities or securities with no slips.
Par to par: exchange bonds (fixed rate to variable rate) is based on the value nominal value each.
Pasar Perdana Internasional: Bond offerings and sales activities in foreign countries outside the territory of Indonesia for the first time.
Pasar Perdana: bidding activity and sales of Government Securities for the first time.
Pasar Sekunder: Sovereign Debt trading activities that have been sold in the primary market.
Pelaksana Penatausahaan Surat Utang Negara: party appointed by the Government to conduct ownership registration, clearing and settlement, as well as the paying agent of interest and principal of Government Securities.
Pemesanan Pembelian Kompetitif: purchase order by stating the volume and yield the desired level of customer.
Pemesanan Pembelian Non Kompetitif: purchase order by stating the volume without yield the desired level of customer.
Penawaran Pembelian Kompetitif: submission of bids by stating the desired volume and yield bidder.
Penjatahan: Bond allocation obtained by each ordering compatible with the sales results.
Perhimpunan Pedagang Surat Utang Negara: is an association which was established since November 2002 to conduct inter-dealer market traders Government Securities, based on trading systems and codes of conduct agreed upon by all members.
Peserta Lelang: party appointed by the Minister of Finance to be able to participate in the auction of Government Securities.
Positive yield curve (normal yield curve): is a curve where short-term bond yield is lower than the long-term bonds and so-called inverted yield curve is negative or if the opposite happens.
Primary dealer (dealer utama): financial institutions appointed by the government, to actively make an offer (bid) in the primary market of government bonds. Primary Dealers can also act as a driver of the market (market makers) in the secondary market.
Primary dealer system: a trading system in the primary market by using a panel of primary dealers (primary dealers).
Primary market (pasar primer): supply and sales activities of securities (including government bonds) for the first time.
Prospektus: written information about the bond offering to the public in order for the purchase of bonds in question.
Public offering auction system: public offering of bonds by using an auction system.

R

Redemption of debt: back debt repayment before or after maturity at a discount (at discount) or premium (at premium).
Redemption value: principal amount payable to holders of bonds on the bond matures.
Reference rate: interest rate used as a benchmark or reference for determining the interest on the bonds, such as level- 1-month SBI interest rate or a 3-month SIBOR / Libor. Reference rate is also often referred to as a benchmark.
Refinancing Risk: risks which the government is not able to obtain funds from the saleof new bonds needed to pay off the bonds will mature.
Refunding bonds: bonds issued in order to pay off bonds that will mature.
Rekening Kas Negara: accounts that hold good throughout the state revenues derived from taxation, non-taxation, and grants and all state expenditures in furtherance of the activities of government.
Remote Trading: long-distance trading system that can be done by members of the office of Member of Stock Exchange respectively where each order is sent directly to the trading system without the need to enter orders through the trading floor.
Reopening: Reissuing the series of bonds previously issued.
Repo: which is also called the RPS or buybacks, are often used as an instrument of money market investments and as an instrument of monetary policy by the Central Bank.
Reprofiling: programs offer an exchange (exchange offer) with the intention to restructure the maturity structure of bonds in order to become more balanced and reduce fiscal pressures in the future.
Repurchase Agreement (Repo): agreement between the seller and the buyer of securities which the seller agrees to repurchase the securities at a price and with a term that has been agreed.
Revenue bonds: bonds issued by local governments to finance specific projects or companies where the owners of bonds secured by the results (revenue) projects financed by bonds. This bond is one type of municipal bonds.
Reverse repo: purchases of securities by one party (purchaser) of any other party (seller) with the agreement will be resold at a price and the agreed time period.
Risk exposure: There is a potential risk of a portfolio of owned structures.
Risk management: management of risks that may arise from the issuance of Government Securities primarily related to financing risk, default risk, operational risk, market risk.
Rounding method: How to rounding up results of a calculation, for example, rounding the full (simple rounding) or rounding with decimals or fractions.

S

Saving Bond: bond that offers a fixed rate of interest over a fixed period of time.
Secondary market (pasar sekunder): securities trading activities (including state bonds) that have been sold in the primary market.
Sektor: grouping of bonds based on its time to maturity.
Setelmen: Sovereign Debt settlement consisting of a settlement fund and the settlement of ownership of Government Securities.
Single price/uniform price auction: auction system in which the winning bidder will pay for the securities in accordance with the average price bid.
Stapled Bond: bonds are classified into long bond exchange program with 2 (two) types of new bonds, which bonds the first type provides a higher coupon bonds of the second type, but the weighted average coupon is the same two types of bonds with a coupon bonds to be exchanged recap . Example: Bond Series FR0001 and FR0006 exchanged for Series FR0007. Series FR0003 and FR0009 FR0008 exchanged.
Stop-out Rate: sales of Government Securities based on the target number of Securities to be sold by the Government.
Straight bonds: bonds can be repaid by or sold back to its owner before it matures.
Sub Registry: institution appointed by Bank Indonesia to do the whole clearing, settlement, including the registration and transfer of ownership of government bonds and perform functions as paying agent for the owners of securities listed on the Sub-Registry.
Surat Perbendaharaan Negara (SPN): Government Securities (bonds) denominated in dollars are sold without a discount coupon, maturity of up to 12 (twelve) months, and repaid at maturity with a nominal value.
Surat Utang Negara (SUN): securities in the form of debt instruments denominated in rupiah or foreign currency, interest and principal payments are guaranteed by the Republic of Indonesia, in accordance with the validity period.
Syndicate underwriting: in the form of underwriting syndicate consisting of the lead underwriter, managing underwriter and co-underwriters.

T

Tax exemption: exemption from the obligation to pay tax on a particular object based on tax regulations.
Tax washing: action to avoid payment of taxes by the taxpayer, by making use of individuals or institutions that obtain tax exemption facility.
Taxable income: net income (net income) before tax.
Tenor: maturities of the bonds.
Time to maturity: The remaining time (usually in years) until a bond is redeemed or matures.
Trading portfolio account (rekening portofolio perdagangan): accounts used to record the government bonds owned by banks in the investment portfolio / asset with its market value (marked to market) and is ready to be traded.
Transaksi Outright: bond transactions buying and selling bonds without any obligation to sell or buy again.
Treasuries: letter of acknowledgment of debt guaranteed by the U.S. Federal Government payment (full faith and credit), was published in a variety of maturities and can be traded. Securities consist of Treasury Bills, Treasury Notes and Treasury Bonds.
Treasury Bills: securities with a maturity of one year or less sold by way of discount (at discount) from the nominal value through short lelang.berjangka issued by the United States (U.S. Treasury) with a discount and paid at maturity in accordance with the nominal value.
Treasury Bonds (T-Bonds): long-term securities with maturities of 10 years or more are issued with a minimum denomination of $ 1,000.
Treasury Notes(T-Notes): maturity of the securities which make a medium tempo up to 10 years is sold by way of direct (cash subscription) through redemption of government debt is still running or falling due, or through auction. Denomination ranging from $ 1,000.

U

Uang Primer atau Reserve Money: liabilities of the monetary authority consisting of banknotes and coins outside the BI and KPKN, which is owned by commercial banks and the private sector, and demand deposits of commercial banks and the private sector (residents) in BI.

V

Variable Rate Bonds: bond interest rate determined based on 3-month SBI interest rate. Interest is paid every three months on the 25th of the month that has been determined.

W

Weighted Average Price (WAP): bond prices are determined by the weighted average.
Withholding tax: taxes collected in advance by a Payer Pick.

Y

Yield (Imbal Hasil): profits expected by investors as a percentage per year.
Yield curve (kurva hasil): graph illustrating the relationship between the level of profit (rate of return) or yields with various maturities of the bonds.
Yield to maturity (YTM): rates of return (rate of return) will be accepted on a bond if the investor held to maturity.