Director General of Financing and Risk Management of the Ministry of Finance, Luky Alfirman, said the sale of Savings Bond Retail SBR003 will target new investors from the younger generation. “What we are targeting is the young generation or millennial who are already working and have income and want to have investment,” said Luky.
Recently most of SBR buyers are people over 40 years old who are identically high profile investors and the owner of Indonesian company which have excess fund to invest. So the government released SBR003 to expand the investor base for people below 40 years old who had been familiar with information technology.
“We want to attract young people to build this country because this is not just investment but also to support the financing of education and infrastructure,” he said. To make SBR003 easily to buy, the government will sell this investment instrument online (e-SBN) to be more practical and lower the limit of minimum order up to Rp1 million.
“We provide online systems very easily, and we also make the order limit lower. We do that to capture the market in the digital economy, and take the advantage of demographic bonuses,” said Luky. From the sale of SBR003, the government expects to reach Rp1 trillion to support financing, with the possibility of raising up to Rp5 trillion in case of excess demand.
Previously, the government will open the offer period of SBR003 on 14 until 25 May 2018 with minimum order of Rp1 million and maximum order of Rp 3 billion. This retail bond has a floating coupon with floating with floor rate that suits with BI 7-Day Reverse Repo Rate.
During the first of three months period from May 31 to August 20, 2018, the coupon rate is set at 6.8 percent from the benchmark interest rate of 4.25 percent plus a fixed spread of 255 basis points or 2.55 percent.
A coupon rate of 6.8 percent will apply as a minimum coupon rate and this minimum coupon rate will not change until the deadline. The next coupon rate will be adjusted, which will be based on the reference rate plus a fixed spread of 255 basis points or 2.55 percent, every three months on the coupon until the deadline.
SBR003 purchase orders which have maturity on May 20, 2020 can be delivered through an electronic system that provided by distribution partners which have interfaces with e-SBN system. The ordering process can be done in electronic systems of distribution partners through four steps, which are registration, ordering, payment and confirmation.
The nine distribution partners that already assigned to serve the purchase order, include PT Bank Central Asia Tbk, PT Bank Mandiri (Persero) Tbk, PT Bank Negara Indonesia Tbk, PT Bank Permata Tbk, and PT Bank Rakyat Indonesia (Persero) Tbk, also PT Trimegah Sekuritas Indonesia Tbk, PT Bareksa Portal Investasi, PT Star Mercato Capitale (Tanamduit), and PT Investree Radhika Jaya.
Disclaimer: This article is a summary of news articles obtained from a number of mass media. We are not responsible for the accuracy of data or sources of information presented by the mass media that became the reference.
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