ORI Bonds, or Retail Government Bonds, are becoming increasingly popular because they offer stable returns, low risk, and full guarantees from the government. This investment product is suitable for individuals who want to earn passive income without being directly exposed to stock market fluctuations.
However, many investors are not fully aware that the potential gains from ORI are not limited to the monthly coupons received regularly.
There are several strategies you can apply to optimize your ORI investment results, whether for medium-term or long-term financial goals. Let’s explore how to maximize the benefits of investing in ORI in this article.
Understand the Profit Potential of ORI First ORI is one type of Government Securities (SBN) issued by the Indonesian government for individual (retail) investors.
This instrument provides a fixed-rate coupon paid monthly directly to the investor’s account. The coupon amount is determined at the issuance of the ORI series and remains fixed throughout its validity period.
ORI coupons are typically higher than bank deposit interest rates, making them an attractive choice for passive income.
Aside from coupons, ORI also offers potential capital gains if you sell it on the secondary market when the bond price increases. One important thing to understand is that ORI prices in the secondary market are influenced by interest rate levels and market demand. When benchmark interest rates fall, bond prices usually rise.
Another benefit is the security guarantee. The government guarantees the payment of coupons and principal until maturity. Therefore, ORI is considered a low-risk investment.
Equally important, ORI is accessible digitally. Investors can purchase it through online platforms provided by banks or official distribution partners without visiting a branch office.
ORI Bond Investment Strategies After understanding its potential benefits, it’s time to apply strategies to maximize your ORI returns. Here are five strategies you can use:
1. Use Monthly Coupons for Reinvestment ORI coupons are paid monthly and can be a stable source of passive income. However, instead of letting the funds sit in your account, you can use the coupons for reinvestment.
For example, use the coupon proceeds to purchase Fixed Income Mutual Funds, other SBN series, or fundamentally strong stocks.
This strategy creates a compounding effect where your returns grow continuously over time.
A simple example: if you hold ORI worth Rp100 million with a 6% annual coupon, you will receive around Rp500,000 per month. If this amount is consistently reinvested, your portfolio value will grow faster than simply waiting for maturity.
2. Sell on the Secondary Market When Prices Rise Not many people know that ORI can also be traded on the secondary market before maturity. This means you can take advantage of price momentum to gain capital gains.
ORI prices may increase if benchmark interest rates decline or market demand rises. Conversely, prices may fall when interest rates go up.
For example, if you buy ORI when BI interest rates are high and several months later interest rates drop, the price of your ORI will likely rise.
This is the right moment to sell and earn additional profits beyond the regular coupons.
However, make sure you understand interest rate trends and market conditions before selling to ensure a truly profitable decision.
3. Use ORI as a Portfolio Stabilizer For investors with diversified portfolios, ORI can function as a stabilizing asset (hedging). When the stock market fluctuates, the stability of ORI helps reduce overall portfolio risk.
Combine ORI with high-risk assets such as stocks or Equity Mutual Funds to create optimal diversification.
This way, you can still capture growth potential from stocks while maintaining stability through fixed income from ORI.
This approach is commonly used by professional investors and wealth managers because it provides protection during times of economic uncertainty.
4. Choose the Right ORI Series for Your Financial Goals Each ORI series has different coupon rates and tenors (durations). Therefore, it is important to select the ORI series that matches your financial goals.
If you have medium-term goals (3–5 years), choose ORI series with shorter tenors for greater flexibility.
However, if your goals are long-term, such as retirement planning, longer-tenor ORI with higher coupons may be ideal.
Choosing the right series helps you manage liquidity and minimize the risk of early selling in the secondary market.
5. Use Digital Platforms for Monitoring and Purchasing Today, ORI investment is much easier thanks to technological advancements. You can buy, sell, and monitor ORI performance directly through official digital platforms of government distribution partners.
Through modern banking applications, you can transact anytime and anywhere without additional fees. These platforms also provide curated market analysis and investment recommendations tailored to your risk profile.
You can also connect your ORI investment with Mutual Funds or insurance products to create a more comprehensive and efficient wealth management strategy.
Digital monitoring also helps you track ORI price trends in the secondary market, enabling quick and accurate buy or sell decisions.
Digital Platforms for ORI Bonds ORI is well-known as a safe and stable investment instrument. With the right strategies from reinvesting coupons, diversifying your portfolio, to utilizing digital platforms you can turn ORI into a more optimal source of profit.
For investors who want to manage wealth smartly and modernly, investing in ORI together with DBS Treasures priority banking
You will receive regular coupons paid periodically. Not only that, you also have the opportunity to gain capital gains.
The coupon rates are competitive, above average deposit interest rates. You also don’t need to worry about additional transaction fees. All transactions can be made 24/7 directly through the DBS digibank Application
Through this app, you can buy, sell, switch, and even register your SID (Single Investor Identification). You can also link ORI with various Mutual Fund options from Fund Houses or Investment Managers based on product categories.
You will also be supported by a team of financial experts who communicate curated market analysis and the latest opportunities tailored to your risk profile and portfolio needs, powered by Artificial Intelligence/Machine Learning (AI-ML). These insights are complemented by curated investment (Grow) and insurance (Protect) solutions, so you can invest quickly and confidently through your preferred channel.
ORI Bonds deserve to be one of the main pillars in every individual’s medium-term and long-term financial strategy. So, if you are ready to start investing, DBS Treasures priority banking
This publication has been curated by the internal team of PT Bank DBS Indonesia (DBSI) and distributed by DBSI.
DBSI is licensed and supervised by the Indonesian Financial Services Authority (OJK). This publication does not constitute, and should not be regarded as, an offer, recommendation, and solicitation for you to purchase or conduct any transaction as described herein. It is also not intended to invite or permit any public offering for the purchase of, or participation in, any transaction in exchange for cash or any other form of benefit, and it should not be interpreted as such.
