Sah! Government set ORI020 coupon at 4.95%

Reporter: Aerospace Wisdom | Editor: The novice Laoli

KONTAN.CO.ID – JAKARTA. The fifth retail Government Securities (SBN) this year, namely Retail Bonds ORI020 series will be offered on Monday (4/10). The plan is that the three-year SBN will be offered until October 21.

Director of State Debt Instruments DJPPR Ministry of Finance (Kemenkeu) Deni Ridwan confirmed that the ORI020 coupon was set at 4.95%. This amount is much smaller than the previous series of retail SBN, namely SR015 which offers a coupon of 5.1%.

Deni explained that in setting the ORI020 coupon, the government followed the SUN yield movement with the appropriate tenor, reference interest rate, LPS Rate, and the declining interest rate on SOE bank deposits.

“We assess that the ORI020 coupon is still attractive compared to other investment instruments because ORI is a short-term and safest investment instrument, because it is guaranteed by the state,” Deni told Kontan.co.id, Thursday (30/9).

Also Read: Optimizing non-debt financing, government cuts SBN issuance this year

Although in terms of coupons it is much smaller than the previous retail sbn, Deni is optimistic that ORI020 will still get a warm response from the community. In addition to being safe, the liquid nature of ORI020 because it is traded on the secondary market will be an additional attraction.

Senior Economist Samuel Sekuritas Fikri C Permana said the ORI020 coupon this time was still quite attractive. He believes, there will still be many people who are hunting for this one instrument.

He compared the coupon with the yield on 3-year SBN which is currently at 3.7% – 3.8%. On the one hand, deposit rates from banks are still low, moreover LPS has also lowered the guarantee rate for rupiah deposits to 3.5%.

“So the 4.9% interest is still attractive, moreover, the characteristics of retail SBN investors are conservative investors,” Fikri added.

Also Read: The government will cut the issuance of SBN in the prime market for 2021

Fikri added that the bond tax, which is now only 10 percent, from the previous 15 percent, is also an additional attraction for investors, considering that the tax on deposits reaches 20 percent. Therefore, he believes the sale of ORI020 will get an enthusiastic response from the public.