Take note! ORI018 will be offered starting October 1

ILLUSTRATION. The Ministry of Finance’s DJPPR will offer ORI018 from 1 to 21 October 2020.

Reporter: Hikma Dirgantara | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. The Indonesian government this year has scheduled six retail debt securities issuances. The sale of SR013 yesterday is the fourth retail debt sale this year. Previously there were SBR009, SR012, and ORI017.

Of the four retail letters, the government managed to collect funds from the public amounting to Rp 58.39 trillion. Sales of SR013 also became retail debt securities with the highest sales after posting IDR 25.67 trillion. So what retail debt series will the government issue next?

Deni Ridwan, Director of Government Securities at the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance, confirmed that the next series of retail debt securities is the ORI018 series of retail bonds.

“According to our observations, currently the public’s preference is higher for investment instruments that are safe, profitable, and easy to trade. For that, the Ministry of Finance’s DJPPR will offer ORI018 from October 1 to 21, 2020, “said Deni to Kontan.co.id, Monday (29/9).

Also Read: Set aside funds, ORI018 will be offered in October, a savings sukuk in November

Deni says ORI018 will be This will be SBN retail tradable last for this year. After ORI018, the government plans to issue ST007.

Head of Fixed Income Sucorinvest Asset Management Dimas Yusuf said that the prospect of ORI018 will still be attractive. Even though SR013 has just broken the record, Dimas sees that currently in the market there is still room for demand for bonds tradable.

Even Dimas said, ORI018 has a chance to break the SR013 sales record. However, provided that the yields offered must be attractive to investors. Dimas himself estimates that the ORI018 yield is likely to be smaller than the SR013 yield.

Also Read: Reaching IDR 25.67 trillion, SR013 broke the sales record for online retail debt securities

“The opportunity for the ORI018 coupon to fall is quite open because there is a tendency for the government to feel that the high demand for SR013 indicates that they can slightly lower their yields. So it depends on the real government, wanting to prioritize cost who are cheaper or willing to be able to withdraw funds from the larger public, “said Dimas.

Dimas assessed that as long as the government reduces the yield for ORI018 by around 10-15 bps from the SR013 coupon, the coupon will still be attractive. Just so you know, SR013 itself offers a 6.05% coupon.

“If you look at the market, the returns on money market mutual funds and deposits in general have decreased slightly. So it is only natural that the government decides to reduce the yield. Even though it has decreased by 10-15 bps, (ORI018 coupon) is still attractive as an investment diversification option, “concluded Dimas.

Also Read: The investment climate is improving, enthusiasts of SR013 have grown