Indonesian Retail Bonds ORI025 Records Sales of IDR 10.87 Trillion

BOND - JAKARTA. Two weeks after being marketed, the Retail State Bonds (ORI) series ORI025 has recorded sales of IDR 10.87 trillion so far. The ORI025 offer is still ongoing until February 22, 2024, next week.

Just so you know, ORI025 is available in two investment periods, namely a tenor of 3 years (ORI025-T3) and a tenor of 6 years (ORI025-T6), with coupon sizes for each tenor of 6.25% and 6.4% respectively. The government has set an initial sales target for ORI025 of IDR 25 trillion, with details of IDR 15 trillion for a 3-year tenor and IDR 10 trillion for a 6-year tenor.

The Director of State Debt Securities DJPPR Ministry of Finance (Kemenkeu), Deni Ridwan revealed, the total order for ORI025 tenor 3 years (ORI025-T3) and tenor 6 years (ORI025-T6) was recorded at IDR 10.87 trillion, as of Thursday (15/2) at 19.30 WIB. With details, orders for ORI025-T3 amounted to IDR 8.629 trillion while orders for ORI025-T6 amounted to IDR 2.27 trillion.

Deni said this achievement shows that the progress of ORI025 sales is still on target. He predicts the total sales of ORI025 will continue to increase, and is optimistic that the IDR 25 trillion target can be achieved amid global economic uncertainty.

He explained this is because Indonesia's economic growth remains solid at 5.05% annually (YoY) in 2023 and the inflation rate is also controlled at the level of 2.57% YoY in January 2024.

From a global perspective, Deni believes that the increasingly controlled inflation rate in the United States (US) and Europe has increased market players' confidence that interest rates in these developed countries have peaked and will start to decrease in the second or third quarter of this year.

"Then, we also see that the recent election has not hurt the issuance of SUN to date,“ Deni told the media, after the event of Watching the Easy Profit Film and ORI Investment Surgery, in Jakarta, on Thursday (15/2).

He said that the government continues to strive to encourage public interest to be interested in investing in this ORI025. This is done by carrying out education and socialization of domestic retail SUN in a more innovative way. For example, like today's event, they conducted a film surgery of Easy Profit and linked it to investment in ORI025.

“So we continue to educate the public to be interested in investing, like this joint film-watching event of Easy Profit. We hope that in the future the public's interest can be even higher,” he said.

Slower sales progress

Furthermore, Deni said that the sales of this ORI025 have slower progress compared to the ORI024 series. According to him, several things influence this slowdown. Among them is the long Chinese New Year holiday in 2024, because every time enter a long holiday, sales will be less than usual.

Then, he mentioned the next factor is, the General Election (Election) which eventually made many investors adopt a wait-and-see, attitude until the Election is over and what the results were.

Not only the Election but investors who adopted a wait-and-see attitude also because of the interest rate policy in the United States (US). This is predicted to also affect the domestic interest rate policy.

"Indeed, the decline in interest rates in the US is predicted to be slower than previously estimated," said Deni

Deni explained ORI025 is relatively safe for investment because it is a Retail State Securities (SBN) product that is fully guaranteed by the Government. This adds value to ORI025 in addition to offering high coupons when interest rates are trending down.

The ORI025 offering period has started from January 29, 2024, until February 22, 2024. Meanwhile, the date of determination of ORI025 sales results on February 26, 2024, and the settlement date on February 28, 2024.