Not Just Stocks, SBN Retail Is Still Attractive To Investors In 2021: Its Safer Cuan

Ministry of Finance Office (Photo: Doc. Ministry of Finance)

JAKARTA - The government's decision to re-release government securities (SBN) throughout 2021 received a positive response from market players.

Avrist AM Head of Investment Farash Farich said he was sure that one of the state financing instruments was the priority target of investors this year.

"Usually, retail SBN is in high demand," he told VOI, Monday, January 4, 2021.

According to Farash, the more secure nature of retail SBNs is a reason for investors to invest their funds in these instruments.

"In addition, if we pay attention from last year to the present, there are additions because inflation is still low below normal," he explained.

Not only that, the yields offered by retail SBN are quite attractive because they offer a better size than traditional instruments promised by banking institutions.

"In addition, there is an income stream from monthly coupons that is higher than deposits with the same investment amount," he said.

Quoting data reported by the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance, throughout 2020 the government has absorbed funds of no less than IDR 76.7 trillion. This figure was collected thanks to the issuance of six retail SBN series.

Meanwhile in 2019, the government is said to have earned IDR 49.7 trillion through retail SBN released in 10 series. Even though the 2020 series was less than in 2019, the total value of orders last year was higher.

For your information, Retail SBN is a type of investment product that is issued and guaranteed by the government so that it is safer. This instrument is also mutual in nature because the community can help state finances through financial support with certain yields.

This year, the government itself plans to use the same scheme as an alternative to financing state finances. Meanwhile, the value targeted through retail SBN is estimated to be between Rp. 60 trillion and Rp. 80 trillion with 6 series of securities to be released.