Retail Government Securities (SBN) are investment instruments issued by the Ministry of Finance. According to data from the Indonesian Central Securities Depository (KSEI), the number of investors in Government Securities (SBN) as of the end of January 2024 reached 1,015,531 investors. However, this number is still far from the total investors in the Indonesian capital market, which has reached 12,326,700 investors.
Looking more specifically at employees where retail SBNs are issued at the Ministry of Finance, research conducted by the Dana Rakca Financial Planning Club (DRFPC) community in 2022 based on the results of the Financial Check Up of 6,687 Ministry of Finance employees showed that retail SBNs ranked 6th as a favorite investment choice. In the ranking, the first place is gold investment (precious metals), followed by property, stocks, deposits, and mutual funds. Why is interest in investing in retail SBN still low?
Most of us grew up and were educated by generations who have the understanding that the safest place to save money for future needs is by buying gold, or land and houses. It's no wonder that gold is still the top choice. Bond instruments are still a foreign name to most Indonesians.
In terms of risk, retail SBN is a low-risk investment instrument, making it suitable for almost everyone. There are conventional retail SBN options such as ORI (Retail Government Bonds) and SBR (Retail Savings Bonds), as well as retail SBN with sharia formats such as SR (Retail Sukuk) and ST (Savings Sukuk). If you have set your investment horizon, you can choose between retail SBN with a tenor of 2 to 6 years. If you need a longer duration, you can re-invest in retail SBNs at maturity, or invest in non-retail SBNs.
In terms of liquidity risk, how quickly an instrument can be sold for cash, the liquid instrument choices are ORI and SR. Both are tradable in the secondary market (where investors can buy and sell). ORI and SR are offered with a fixed rate of return (coupon). On the other hand, if you are more concerned about the risk of price fluctuations in the market, you can consider SBR and ST. The illustration is that if the benchmark interest rate of Bank Indonesia rises, the yield of SBR and ST will also rise. However, if the benchmark rate from BI goes down, then the yield will be set at a minimum of the yield when the SBR and ST were first issued.
What do you think? Interested in investing in SBN Retail?
Source : mediakeuangan.kemenkeu.go.id
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