You want to invest in SBN instruments or Government Bonds? ORI or Obligasi Ritel Indonesia is one of the preferred SBN instruments.
Bonds are debt securities issued by corporations or governments in which there is a nominal value, maturity period, and a certain coupon rate. The reason why debt securities can be used as investment instruments is because when a purchase is made on these bonds, investors who buy them will get coupons or yields on a regular basis. They also have the potential to get capital gains if the price increases.
In Indonesia, there are bonds issued by the government, namely Obligasi Negara Ritel or also known as Obligasi Ritel Indonesia (ORI). Investors can buy ORI through Bond selling agents.
The security of Obligasi Ritel Indonesia (ORI) is also guaranteed, because it is stated in Law Number 24 of 2002 concerning Government Securities. Meanwhile, the principal payments and ORI coupons have been regulated in the State Revenue and Expenditure Budget (APBN) within a certain period.
Purpose of ORI Issuance
The issuance of State Securities by the government is used as an alternative source of funding for various needs of government programs for public welfare. Among them are related to the equitable distribution of national development programs, health, education, and various community welfare programs in Indonesia.
In addition, the global economy also has a relatively high level of fluctuation. Indonesia is no exception. Therefore, the government must create efforts as an alternative funding for various government programs in order to prosper the community.
In this case, Obligasi Ritel Indonesia aims to cover the shortfall in the State Revenue and Expenditure Budget (APBN) through this investment. With the purchase of Obligasi Ritel Indonesia (ORI), investors will not only grow their personal funds. But it also helps the government in national development.
The funds that have been collected from the results of this investment will later be used to help develop the country. With the contribution from the community, the value of the rupiah also strengthened.
Characteristics of Government Bonds - Obligasi Ritel Indonesia (ORI)
The government issues Government Securities (SBN), each of which has different characteristics and advantages. Same as ORI, where the Government Bonds instrument has the following characteristics.
- ORI takes the scripless form, and can be traded between Domestic Investors (tradable SBN).
- Has a fixed value coupon, so there will be no increase or decrease in value.
- It has the potential for capital gain/loss because it is a tradable type of Government Securities or in other words, it can be traded in the Secondary Market. This means that the price of the Obligasi Ritel Indonesia (ORI) instrument can increase or decrease based on the level of market demand. For example, if the purchase price of an asset is 100, it can increase to 102 or decrease to 99. However, when it matures, the asset price will return to 100.
- A minimum purchase of IDR 1 million with a maximum purchase of IDR 3 billion.
- Offers coupons that are paid monthly.
- Has a coupon with a relatively higher value than the Reference Interest Rate or BI Rate at the time the Obligasi Ritel Indonesia (ORI) were issued. For example, in 2021, the BI Rate was at 3.5%. Meanwhile, Obligasi Ritel Indonesia (ORI) issued in 2021 has a coupon of 5.57% per year.
Advantages of Investment in Obligasi Ritel Indonesia (ORI)
The various advantages of choosing Obligasi Ritel Indonesia (ORI) to invest are as follows.
1. Coupons Guaranteed by the Government
Based on the SUN (State Debt Instruments) Law, the government has guaranteed the coupon and the principal value, and has prepared it in the State Revenue and Expenditure Budget (APBN) every year. That is why the choice of Obligasi Ritel Indonesia (ORI) is a safe investment alternative with a relatively low default risk.
2. Relatively Higher Coupons Than Fixed Deposit Interest
The government often offers coupons that are higher than the average deposit interest rate for each offer of government securities products. In addition, investors also have the potential to obtain capital gains or potential profits. This profit is obtained from the sale of Bonds in the Secondary Market at a higher price than the purchase price.
3. Offers Monthly Coupons
Investing allows investors to earn a fixed interest rate each month until maturity. When it is due, the issuer of the securities will return the initial capital.
Obligasi Ritel Indonesia (ORI) offers a maturity period of up to 3 years. However, investors can sell this investment product before maturity in the Secondary Market.
4. Supporting the National Development
Obligasi Ritel Indonesia (ORI) provides an opportunity for investors to be able to participate in supporting the country's development related to financing. In addition, the policy for purchasing Obligasi Ritel Indonesia (ORI) can only be carried out by Indonesian citizens who have an ID card. Of course this will further strengthen the domestic economy.
5. Funding Guarantee
Having an investment in Government Bonds of the Obligasi Ritel Indonesia (ORI) type can provide additional benefits for investors. This is because investors can use it as collateral to get funding. This proof of ownership of Obligasi Ritel Indonesia (ORI) can later be loaned or pledged to other parties.
6. Investing is More Practical and Easier
Now, investors can make various investment transactions in Obligasi Ritel Indonesia (ORI) by utilizing a digital system. Investing more easily and practically can be done through DBS Treasures. Do you want to gain the various advantages of being a priority banking Client?
Investing in Government Bonds is More Convenient with DBS Treasures
Now, the purchase of Government Securities or Bonds is increasingly accessible to investors. This convenience is due to the e-SBN service.
Bond purchase process can be done anytime and anywhere. The method is also easy, because you only need to download and log in to the digibank by DBS Application, fill in your personal data, and then place an order for SBN.
Join now as a priority banking Client of DBS Treasures and invest your funds. Later, you can gain various advantages and exclusive privileges as follows.
1. Competitive Coupon
Investors will benefit from a competitive bond coupon rate above the average Fixed Deposit interest rate.
2. Published by the Government
Investments in Government Bonds through DBS Treasures are safe and guaranteed by law. In addition, investment security is also supported by a platform that is already under the auspices of the Financial Services Authority (OJK).
3. Provides Various Options
Investing in Bonds offers a wide selection of timeframes according to investors' preferences. Likewise for the selected currencies, such as IDR and USD.
4. Regular Coupon
Bond investment will provide regular income in the form of coupons that the issuer will pay periodically during the investment period.
5. Potential Capital Gain
Bond instruments can be re-sold at any time before maturity. Where later investors will also have the opportunity to obtain capital gains or potential profits from the increase in bond prices.
6. No Additional Charges
There is only a spread or the difference between the selling price and the purchase price (bid and offer), without any additional costs.
7. Transactions 24/7
Comprehensive Bond products are available on the digibank by DBS Application that you can trade. Various banking services can make it easier for you to manage your finances anytime and anywhere, as well as investment activities up to 7 days 24 hours.
You can gain access simply through a smart phone without having to go to a bank branch office. Download the digibank by DBS Application immediately on Google Play Store or Apple Play Store.
In addition to the various advantages above, you can also have further discussions about investing in these Bonds with DBS Treasures. Here, you can find wealth management strategies that are tailored to your preferences and aspirations, so you confidently make financial decisions. You will be supported by certified Relationship Manager and wealth specialists.
Obligasi Ritel Indonesia (ORI) are suitable for investors who want minimal risk but gain the potential for higher returns than the average Fixed Deposit interest rate. With DBS Treasures, various benefits and ease of investing in Government Bonds are in sight.
