Mandiri Sekuritas: Bond Market In 2023 Will Be Brighter

Illustration. (Photo: Doc. Antara)

JAKARTA - Director of PT Mandiri Sekuritas Theodora Manik projects that the Indonesian bond market in 2023 will be brighter after successfully showing resilience in the previous year.

“This was driven by the slowing domestic inflation rate and the occurrence of a peak cycle of interest rate hikes. We invite the public to invest in SBR012 because now is the right moment to strengthen investment again ahead of the post-pandemic," he said in an official statement, as quoted from Antara, Friday 20 January.

This year, Mandiri Sekuritas has again been trusted by the government to become one of the distribution partners of the Savings Bond Retail investment product series SBR012. This retail Government Securities (SUN) product is specifically sold to Indonesian Citizens (WNI) starting January 19-February 9 2023.

SBR012 offers three main benefits for investors, namely attractive returns, affordable investment starting from IDR 1 million, and safe because it is guaranteed by the government. Apart from that, this time SBR012 is also very special because it is offered in two types, namely SBR012-T2 and SBR012-T4.

Coupon SBRO1 2-T2 has a two-year tenor of 6.5 percent per year and coupon SBR012-T4 has a four-year tenor of 6.359 percent per year. When compared to the BI 7 Days Reverse Repo Rate (BI 7DRRR), which is currently at the level of 5.5 percent, the yield spread is 0.65 percent for SBR012-T2 and 0.854 percent for SBRO12-T4.

"Investing in SBR also means making a real contribution to national economic development because the funds collected will be used by the government to fulfill the 2023 State Budget (APBN) target. The SBR012 funds collected will be used for equitable development, education, and health programs in Indonesia,” said Theodora.

Another thing about SBR012 is the coupon that uses a floating floor mechanism. That is, the coupon can increase if the benchmark interest rate rises, but will not decrease if it is lower than the minimum threshold.

Coupon SBR012 will be reviewed every three months considering changes in the BI reference rate. The effective dates for new coupons after review are May 11, August 11, November 11, and February 11 annually.

SBRO12-T2 will mature on February 10, 2025, while SBRO12-T4 will mature on February 10, 2027.

The maximum purchase for SBRO12-T2 is IDR 5 billion per investor and for SBRO12-T2 is IDR 10 billion per investor. This maximum value is higher than that of SBR011.

“SBRO12 can be purchased easily and safely online through a digital platform: Mandiri Online Securities Trading (MOST): sbn.mostco.id. Through these digital services, the registration and transaction processes can be carried out quickly, and customers can monitor their investment performance at any time, and from anywhere," he said.