Moody's Investors Service has assigned Baa2 ratings to the proposed senior unsecured US Dollar notes to be issued by the Government of Indonesia (Baa2 stable) - Photo by the Ministry Office

JAKARTA (TheInsiderStories) – Indonesian government received Rp4 trillion (US$283.69 million) first saving bond retail (SBR005) offering, said the finance ministry on Tuesday (01/28). Previously, the director general of financing and risk management under the ministry has indicative targets Rp5 trillion.

The ministry said, this opens the retail state debt securities selling in 2019. With the fresh funding, the government will have additional capital for this year’ State Budget.

The SBR005 has floating coupon with Bank of Indonesia’s 7-Day Reverse Repo Rate as its lowest benchmark. For the first three months, the coupon determined at 8.15 percent. And next coupon will be adjusted every 3 months. The SBR’ maturity date will due on Jan. 10, 2021.

SBR005 is the fourth instrument sold through e-SBN system. Previously, government has sold SBR003, SB004, and ST-02 online.

Sold online, the SBR005 savings bond was bought more than half by millennials, categorized as 19-39 years old. Meanwhile, people around 40-54 years old is the second highest buyer at 27.5 percent.

This year, government aims to issue Rp60 trillion retail bond. There will be 10 offerings total, consist of SBR005, SBR006t, SBR007, and SBR008. Then, four saving sukuk ST003, ST004, ST005, and ST006 will be issued later. Moreover, there will be one retail state bond ORI016 and retail SUKUK series SR011.

Indonesia government planned to issue Rp825.7 trillion gross government bond to cover 2019 State Budget‘ deficit. Among those, aroung 9-10 percent will be issued as retail state securities and private placement. Government also plans to offer more securities online, so it can have a greater coverage across Indonesia.

In 2018, Indonesia Finance ministry collected Rp46 trillion retail bond funding, that consists of Rp32.62 trillion retail state securities and Rp13.38 trillion retail SUKUK. But it only offered two saving bonds, SBR003 and SBR004 that values Rp9.24 trillion in total.

US$1: Rp14,100
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