Indonesia Offers Retail Sukuk SR020 Starting on Friday (3/1), Coupon of 6.30% & 6.40%

SUKUK - JAKARTA. The government of Indonesia has officially set the coupon rate for Retail Sukuk series SR020. The retail Shariah Government Securities (SBSN) instrument will be offered starting tomorrow, Friday (1/3).

The Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance (Kemenkeu) revealed that SR020 is offered in two investment term options (dual tranches), namely a tenor of 3 years and 5 years. The SR020 offering period will run from March 1 to March 27, 2024.

The coupon or yield rate is 6.30% for a 3-year tenor, while the 5-year tenor has a coupon rate of 6.40% with a fixed rate. SR020-T3 will mature on March 10, 2027, while SR020-T5 will mature on March 10, 2029.

Dwi Irianti Hadiningdyah, the Director of Sharia Financing at DJPPR Kemenkeu, explained that in determining the SR020 coupon, as usual, the government will consider the most current market conditions. It is also in line with the government's financing management strategy and is expected to still be at a level that is attractive to investors.

Dwi expects public interest in SR020 to remain quite high. Therefore, the sales target is estimated to not be much different from the previous Retail SBN that has been offered this year.

As an illustration, ORI025 as the first retail SBN of 2024 managed to reap sales of IDR 23.92 trillion. Meanwhile, the previous retail sukuk series, SR019, recorded sales of IDR 25.33 trillion offered last year.

“SR020 is one type of Retail SBN whose risk is relatively very small and has characteristics that are beneficial for retail investors,” Dwi told Kontan.co.id, recently.

Dwi believes SR020 will be a choice for retail investors. First, SR020 is safe because the principal and its yield are guaranteed by law.
Second, in accordance with sharia principles (obtaining a sharia opinion from DSN-MUI), so investors who are concerned about sharia compliance need not worry.

Third, it's easy and affordable, because the minimum purchase is IDR 1 million and can be ordered with an online platform (e-SBN) anytime and anywhere. Fourth, it's profitable, because SR020 provides coupons regularly, so investors can use the monthly yield to meet their financial needs in a planned manner.

And fifth, Dwi said, investing in SR020 means that the community is participating in building the country, because the proceeds from the issuance are used for development financing. In addition, SR020 is a tradable instrument in the secondary market (tradable) so the risk of liquidity can also be minimized.

For those interested in buying the SR020 instrument, here is a list of SR020 distribution partners appointed by the Ministry of Finance.

1. Bank Central Asia

2. CIMB Niaga

3. Commonwealth Bank

4. Bank Danamon Indonesia

5. DBS Bank Indonesia

6. HSBC Bank Indonesia

7. Bank Mandiri

8. Maybank Indonesia

9. Bank Mega

10. Bank Negara Indonesia

11. OCBC NISP Bank