JAKARTA (TheInsiderStories) – Indonesia’ Finance Ministry has set an indicative target of Rp2 trillion (US$140.84 million) from the issuance of government securities in the form of Savings Bond Ritel (SBR) series SBR008, said the management today (09/5).
Director of Debt Securities Directorate General of Financing and Risk Management Loto Srinaita Ginting said the SBR008 issuance aims to expand the base of domestic investors so the government bonds were not only dominated by foreign parties.
SBR008 has the characteristic of not being able to be traded on the secondary market and cannot be disbursed until maturity, except for early redemption. This investment instrument can be purchased with a minimum order of Rp1 million and maximum of Rp3 billion.
The SBR008 has a floating type coupon with a minimum coupon rate that refers to Bank Indonesia (BI) 7-Day Reverse Repo Rate. The coupon calculation is the BI reference interest rate plus a fixed spread of 1.7 percent.
Therefore, the coupon rate for September until December 2019 is 7.2 percent or 5.5 percent as the reference rate plus 1.7 percent for the spread rate. The 7.2 percent level is also a minimum coupon limit. That means even though BI lowered its benchmark interest rate, the SBR008 coupon remained at 7.2 percent.
The SBR008 has a maturity date on September 10, 2021. Although it cannot be disbursed to maturity, there is an early redemption period that falls on October 12, 2020, but the maximum disbursement is 50 percent.
The SBR008 is only be purchased online through distribution partners. There are 22 distribution partners chosen by the government, consisting of 13 commercial banks, 4 securities companies, 3 technology-based special securities companies and 2 peer to peer lending fintech companies.
The following is a list of distribution partners of SBR008: Bank Central Asia, Bank Mandiri, Bank Negara Indonesia, Bank Permata, Bank Rakyat Indonesia, Bank Tabungan Negara, Bank Maybank Indonesia, Bank CIMB Niaga, Bank OCBC NISP, Bank Panin, Bank DBS Indonesia, Bank HSBC Indonesia and Bank UOB Indonesia.
Then, there are Trimegah Sekuritas Indonesia, Danareksa Sekuritas, Bahana Sekuritas, Mandiri Sekuritas, Bareksa Investment Portal, Star Mercato Capitale, Nusantara Sejahtera Investama, Investree Radhika Jaya (Investree) and Mitrausaha Indonesia Group (Modalku).
While previously, the government had issued 5 series of SBRs this year, SBR003, SBR004, SBR005, SBR006, and SBR007. The issuance value of the five instruments reached Rp18.74 trillion with 206.11 thousand investors.
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