The Indonesian Government Will Issue ST012 This Month, What is the Potential Yield?

April 18, 2024, 10.15 AM  | Reporter: Nadya Zahira
The Indonesian Government Will Issue ST012 This Month, What is the Potential Yield?

ILUSTRASI. Warga mencari informasi tentang Sukuk Tabungan (ST) seri ST011 di Jakarta, Minggu (26/11/2023). Kementerian Keuangan menambah lagi kuota pemesanan Sukuk Tabungan seri ST011 dari Rp14 triliun menjadi Rp15,5 triliun seiring dengan melonjaknya permintaan investor. ANTARA FOTO/Aditya Pradana Putra/nym.

SUKUK RITEL - JAKARTA. The Indonesian government has announced plans to issue a new series of the State Securities (SBN) Retail type Sukuk Savings series ST012 from April 26 to May 29, 2024. This follows the closure of the retail sukuk series SR020 offering period on Wednesday (27/3).

Head of Retail, Product Research & Distribution Division at Henan Putihrai Asset Management (HPAM), Reza Fahmi, predicts that ST012 will attract significant interest from domestic retail investors. 

According to Reza, although ST012 is non-tradable, it features a special floating with floor coupon. This feature allows the coupon value to increase if the reference rises, but it will not fall below a set minimum and will be reviewed every three months. 

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“So, even though it is Sharia-compliant, ST012 can be owned by all retail investors, regardless of religious or belief backgrounds,” Reza told on Wednesday (17/4).

However, Reza noted that the Ministry of Finance has yet to determine the yield or coupon of ST012. Nevertheless, if the Bank Indonesia (BI) interest rate remains at 6%, the yield is likely to be similar to the Retail Sukuk (SR) series SR020, which is around 6.3%. 

“But, if the BI rate drops, the yield from ST012 could be around 6%,” he added.

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Meanwhile, Associate Director of Fixed Income at Anugerah Sekuritas, Ramdhan Ario Maruto, believes that the sale of ST012, set to be issued at the end of April 2024, also has the potential to exceed targets like SR020. 

He suggests that the sale of ST012 is likely to generate high enthusiasm from investors, in line with Bank Indonesia's potential to cut the benchmark interest rate. Currently, the BI Rate is still at 6%.

“In my opinion, even though ST012 is non-tradable and therefore attracts fewer enthusiasts compared to tradable ones, it will still be sought after by the public as market liquidity is still very well maintained,” Ramdhan told on Wednesday (17/4). 

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Furthermore, Ramdhan noted that the growing public interest in investing in ST012 is also driven by the ongoing market deepening. Moreover, the government has started actively offering retail bonds every year.

“Especially considering that the Indonesian public are depositors, it is easier to attract them to become investors," he continued.

This is also because the coupons offered by SBN are higher. Additionally, the tax is lower compared to deposits. Moreover, investor incentives are influenced by volatility, especially from interest rates, so the offered coupon increases as investment risk rises.

Ramdhan predicts that the yield from ST012 will be around 6.5%, with a sales target projection reaching up to Rp 10 trillion, in line with the excellent liquidity of the public and the market. 

Editor: Syamsul Azhar

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