Government Offers 2 Retail Saving Bond Series With Interest Coupon 6.45-6.6 Percent

JAKARTA - The Ministry of Finance (Kemenkeu) offers the public the issuance of retail securities starting today, Monday, June 10. Namely by issuing retail bond savings (SBR) consisting of two series, namely SBR013T2 and SBR013T4.

Meanwhile, the government issued SBR series SBR013T2 for a 2-year tenor and SBR013T4 for a 4-year tenor.

In addition, SBR issued by the government for each individual Indonesian citizen (WNI) with orders ranging from IDR 1 million and a multiple of IDR 1 million. For SBR tenor 2 years the maximum order is IDR 5 billion, while SBR tenor is 4 years IDR 10 billion.

Meanwhile, the two SBR series are offered online (e-SBN) through distribution partners from 09.00 WIB June 10, 2024 to 10.00 WIB July 4, 2024.

Director of State Securities of the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance, Deni Ridwan, said that the issuance of retail debt securities was intended for retail investors, and made this retail debt securities a state instrument for the distribution of wealth.

"This retail SBN is intended for individual retail investors and Indonesian citizens because the Minister of Finance Sri Mulyani Indrawati has a vision of making retail SBN a state instrument for the distribution of wealth," he said during a press conference in Jakarta, Monday, June 10.

Deni explained that this SBR has a liquidity risk because it cannot be traded/transformed in the secondary market. However, investors can disburse part of SBR's funds before the maturity date by facilitating early-redemption facilities.

In addition, Deni said that in the issuance of retail securities, his party was targeting IDR 15 trillion to IDR 20 trillion from the issuance of this SBR.

"For the SBR013 issuance target, we have an initial target of around Rp. 15 trillion, but later we will also pay attention to interest from the public if we have high interest in having spare allocations to be upsized of up to Rp. 20 trillion," he said.

Deni said that in the APBN, a large budget was allocated to provide returns for investors holding SBN.

Meanwhile, the amount of SBR013T2 and SBR013T4 coupons was 6.45 percent and 6.60 percent, respectively, with a minimum coupon rate (floating with floor) with a benchmark interest rate being Bank Indonesia Rate (BI-Rate).

Meanwhile, the benchmark interest rate that applies when determining coupons is at the level of 6.25 percent. The adjustment to the coupon rate is based on the benchmark interest rate plus a fixed spread of 20 bps (0.20 percent) for SBR013-T2 and added a fixed spread of 35 bps (0.35 percent) for SBR013-T4.

According to Deni, with the minimum floating coupon rate, when the BI Rate interest rate goes up, the coupon given by the government will also increase with a review of the amount of coupons every three months. However, when the BI Rate interest rate drops, the coupon will still be in accordance with the minimum predetermined limit.

"So in the future, BI will increase the interest rate again to 6.5 percent, so it's just a matter of adding the basis points. We will always maintain this margin so that investors can get incentives to buy SBR, but if BI lowers the benchmark interest rate, it won't go down," he said.

Meanwhile, the minimum coupon rate applies for the first 3 months, starting from July 10, 2024 to October 10, 2024. In addition, the next coupon rate will be adjusted every 3 months on the date of adjusting coupons until due.

Meanwhile, coupon payments will be made on the 10th of each month and the first coupon will be paid on August 10, 2024 (short coup). If the coupon payment date is not on weekdays, then coupon payments will be made on the next working day without interest compensation.

Meanwhile, the date of determination of the sale results will be announced on July 8, 2024 and the date of the schedule on July 10, 2024. Meanwhile, the date of maturity of SBR013T2 on July 10, 2026, and SBR013T4 is due on July 10, 2028.

Meanwhile, the period of conveying interest was Early Redemption SBR013T2 on July 28, 2025 to August 5, 2025, and for SBR013T4 on July 27, 2026 to August 4, 2026.

The method of ordering the purchases of the two SBR series is as follows:

1. Registration

Registration is carried out at any time even before the Retail SBN offering period is opened. Registration to obtain Single Investor Identification (SID) or a single investor number. If you already have an SID, you can immediately order SB013.

2. Orders

After the registration was successful, Candidate Investors ordered SBR013T2 and SBR013T4 by previously reading the provisions in the Information Memorandum during the offering period.

3. Payments

After the verified order, the Investor Candidate gets a payment code via email/sms according to the policy of each Distribution Partner. The payment code is used to deposit investment funds through the Perception Bank (teller, ATM, internet banking, mobile banking)/Pos/Other Perceptions In the specified time limit.

4. Confirm

After payment, Prospective Investors will receive NTPN (State Revenue Transaction Number) and a complete order notification and will receive an allocation of SBR013T2 & SBR013T4 on the date of schedule/published

For people who are interested in buying these two SBR series, this can be done through 27 designated distribution partners, namely:

Commercial Banks:

1. PT Bank Central Asia, Tbk

2. PT Bank CIMB Niaga, Tbk

3. PT Bank Danamon Indonesia, Tbk

4. PT Bank DBS Indonesia

5. PT Bank HSBC Indonesia

6. PT Bank Mandiri (Persero), Tbk

7. PT Bank Maybank Indonesia Tbk

8. PT Bank Mega, Tbk

9. PT Bank Negara Indonesia (Persero), Tbk

10. PT Bank OCBC NISP, Tbk

11. PT Bank Pan Indonesia, Tbk

12. PT Bank Permata, Tbk

13. PT Bank Rakyat Indonesia (Persero), Tbk

14. PT Bank Tabungan Negara (Persero), Tbk

15. PT Bank UOB Indonesia

16. PT Bank Victoria International, Tbk

17. Standard Chartered Bank

Stock Company:

1. PT BNI Sekuritas

2. PT BRI Danareksa Sekuritas

3. PT Mandiri Sekuritas

4. PT Phillip Sekuritas Indonesia

5. PT Trimegah Sekuritas Indonesia, Tbk

Financial Technology Company specifically for Mutual Fund Effect Seller Agents (APERD):

1. PT Bareksa Portal Investasi

2. PT Bibit Grows Together

3. PT Nusantara Sejahtera Investama (FUNDtastic+)

4. PT Star Mercato Capitale (tamduit)