Featured Interest Rate Trends, Bibit.id: SBR012 Investment Opportunities

Photo: Doc. Bibit

JAKARTA - Throughout 2022 until early 2023, Bank Indonesia was recorded to have raised the benchmark interest rate six times, from initially 3.5 percent to 5.75 percent in January 2023.

In the midst of the current upward trend in interest rates, Government Securities (SBN) with the type of yield (coupon) floating with floor (mining at the minimum level) are increasingly profitable. Because when BI interest rates increase, SBN yields with this type will also increase. Meanwhile, when BI interest rates go down, the yields do not go down.

For example, SBR011 which when offered on May 25-16 June 2022, the initial yield was 5.5 percent per year. Now, after interest rates rose, yields for the period 11 December 2022-10 March 2023 rose to 7.25 percent per year.

Head of Digital Marketing Bibit.id, Angie Anandita Tjhatra, also confirmed that SBN with the floating with floor type is indeed very much in demand.

"For example, during the ST009 offering period in November 2022, the quota was always bought up in minutes. Of course, we are very grateful for the high enthusiasm of domestic investors for SBN products," said Angie, in her statement, Monday, January 23. In early 2023, the Indonesian Ministry of Finance issued SBN series SBR012 with a floating with floor coupon type with an offering period on January 19 - February-9 February 2023. There is a new one with the mechanism for the issuance of SBR012 this year, where SBR012 was published in two product types, namely SBR012-T2 and SBR012-T4. For SBR012-T2 it has a two-year tenor with a yield of 6.15 percent per year, floating with floor. Meanwhile, SBR012-T4 has a four-year tenor with a yield of 6.35 percent per year, floating with floor. Interestingly, on the first day of SBR012, Bank Indonesia raised the benchmark interest rate by 25 basis points (bps) so that in June-August 2023, yield yields SBR012-T2 and SBR012-T4 will increase to 6.4 percent and 6.6 percent respectively.

With these two types, Angie said that SBR012 is a suitable and profitable investment alternative for short and medium-term investors because if the BI benchmark interest rate increases, the return of the two SBN series will also increase. If the BI benchmark interest rate drops, the minimum yield minimum limit is still 6.15 percent per year for SBR012-T2 and 6.35 percent per year for SBR012-T4, no less than that.

The public can invest SBR012 in Bibit with a minimum purchase of IDR 1 million and a multiplicity of 1 million and a maximum purchase of IDR 5 billion for SBR012-T2 and IDR 10 billion for SBR012-T4. In addition to the profitable return, SBR012 investors with a minimum investment value of IDR 2 million can also disburse their investments a maximum of 50 percent before falling due in the Early Redemption period.

SBR012-T2 can be disbursed by a maximum of 50 percent after one year, while SBR012-T4 can be disbursed by a maximum of 50 percent after two years of investing.

To invest in SBN in Bibit, the method is very easy. Investors simply click on the icon or banner "State Securities (SBN)" on the application homepage or Bibit website. In this case, Bibit partners with Stockbit Sekuritas to manage the recording and storage of investor-owned SBN Investor Fund Accounts.

Later, after investors make payments for SBN transactions, investors will receive transaction evidence in the form of State Revenue Evidence (BPN). In BPN, there is a State Revenue Certificate Number (NTPN) issued directly by the state and is proof of ownership of the purchased SBN.

As a SBN sales distribution partner officially appointed by the Indonesian Ministry of Finance, Bibit continues to encourage investors to invest in SBN products and participate in developing the country.

"Through various efforts we have made, Bibit has also succeeded in becoming a partner in the distribution of fintech categories with the most sales at the ST009 Retail Sukuk series offer (11-30 November 2022), ORI022 series Retail State Bonds (26 September-20 October 2022), and Retail State Securities series SR017 (19 August-14 September 2022)., "concluded Angie.