Home News The Indonesian Gov’t Targets US$334M from the Issuance of Retail Bonds

The Indonesian Gov’t Targets US$334M from the Issuance of Retail Bonds

Director of Government Debt, Directorate General of Financing and Risk Management Loto Srinaita Ginting at a press conference in Jakarta - Photo by the Ministry
JAKARTA (TheInsiderStories) – Indonesia’s Finance ministry launched Saving Bond Retail (SBR) series 005 with indicative targets Rp5 trillion (US$244.83 million). The bond offers with coupon 8.15 percent and is planned to start selling on Jan 10 to 24.
Director of Government Securities, Directorate General of Financing and Risk Management at the Ministry of Finance Loto Srinaita Ginting said today (01/10), the coupon rate based on BI-7 Days Reverse Repo Rate plus 215 basis points.
This SBR005 will be marketed by seven sales agents, namely PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Permata Tbk (IDX: BNLI), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Tabungan Negara Tbk (IDX: BBTN), and PT Trimegah Securities Indonesia Tbk (IDX: TRIM).
Previously, from the issuance of SBR 003, the government raised Rp1.9 trillion, or almost double the indicative targets, which was Rp1 trillion. Meanwhile, SBR 004 absorbed Rp7.32 trillion from initial targets Rp1.49 trillion.
In total, the ministry will withdraw Rp60 trillion from retail bond offerings this year or increase from last year’s Rp40 trillion portion. That number took 7.27 percent of the total from this year’s gross government bonds issuance plan of Rp825.7 trillion.
In addition, the government also conducted a Sharia bond auction for SPNS09072019 (new issuance), PBS014 (reopening), PBS019 (reopening), PBS021 (reopening) and PBS022 (new issuance).
The bids that came from this auction reached Rp17.81 trillion and the ministry collect Rp8.65 trillion from the issuances. The auction is mostly carried out at PBS019 worth Rp4.45 trillion with coupon rate of 8.25 percent.
Beside SBR, the government has several other instruments like Indonesian Retail Bonds (ORI) and SUKUK retail for retail investors.
In 2018, Indonesia has issued five retail bond instruments like Retail Sukuk (SR010 series), SBR003 and SBR004 series, ORI15, and Sukuk Savings (ST002).
US$1: Rp14,500
Written by Staff Editor, Email: theinsiderstories@gmail.com