Retail Sukuk agencies calculating sales target

JAKARTA. The new retail sukuk series SR 009 will be released to market on February 27, 2017. As the sales agencies, some banks have started calculating the sales target of the sukuk retail during this year. The banks are targeting to generate Rp 25 trillion-Rp 30 trillion funds from the sales.

Consumer Director of Bank CIMB Niaga Lani Darmawan said that the bank sets a high sales target. However, the bank is still waiting for quota allocated by the government. “We expect to receive a quota up to Rp 2 trillion of retail sukuk series SR 009,” Lani told KONTAN, Monday (6/2).

Previously, CIMB demanded for the quota of Rp 1.5 trillion of retail sukuk series SR-008, which were released in February 2016. However, CIMB demanded for an additional quota up to Rp 2 trillion.

Two other state-owned banks, Bank Tabungan Negara (BTN) and Bank Mandiri set a sales target of more or less the same as last year.

For an example, Bank Mandiri sets the target of SR 009 sales at RP 2.5 trillion-Rp 3 trillion. The SVP of Wealth Management of Bank Mandiri Elina Wirjayakusuma is optimistic that the sharia investment product will sell well.

Meanwhile, BTN sets a target of SR 009 sales as much as Rp 1.25 trillion. Consumer Director of BTN Handayani estimates that the market condition will remain conducive for the government to generate funds from the retail sukuk.

Last year, BTN received a quota of Rp 900 billion for the sales of SR 008. However, due to the increasing demands, BTN asked for an additional quota by Rp 200 billion.

As information, SR 008 offered a yield of 8.3%, while SR 009 is expected to offer a 7% yield.

Consumer and Retail Director of Bank Muamalat Indonesia Purnomo B. Soetadi predicts that the investors may receive the yields at the range of 7%-7.25%. Bank Muamalat set the sales of target at Rp 700 billion.

In 2016, Bank Muamalat booked as much as Rp 680 billion of SR 008 sales. “This number was 105% higher than the initial target,” Purnomo said.

Elina predicts that the government is likely to reduce the amount of sales commissions for the banks as the sales agencies. Therefore, the banks apparently would receive less fee based revenues compared with the last year.

“The sales commission rate in 2017 is predicted to drop from 0.45% to 0.35%,” Elina said. (Muhammad Farid/Translator)