Understanding SBN & How to Invest

Understanding SBN & How to Invest

What Are SBN (Government Bonds)? 

Types of Retail SBN You Can Purchase

Benefits of Investing in SBN   

Risks of Investing in SBN 

Buy SBN via the digibank by DBS Application 

Tips to Start Investing in SBN

For Your SBN Investment, Trust DBS Treasures Priority Banking 

Government Bonds (SBN) are one of the safest investment options Surat Berharga Negara (SBN), or Government Bonds, are investment instruments issued by the government, allowing the public to invest in the form of state debt.

As a relatively low-risk investment, SBN is a popular choice among investors seeking stable returns. At the same time, investing in SBN also contributes to the government’s national budget and development programs.

So, what exactly is SBN and how can you invest in it? Let’s explore further.

What Are SBN (Government Bonds)?

SBN are debt securities issued by the Government of Indonesia to help fund national development and government needs. By purchasing SBN, investors are essentially lending money to the government.

In return, the government pays interest (coupon) at regular intervals until the bond matures.

In short, the government receives funding for various development programs, while investors earn competitive returns through regular interest payments.

Types of Retail SBN You Can Purchase

There are several types of retail SBN available for public investment. Below are the main ones:

1. Retail Government Bonds (ORI)

ORI are issued to encourage greater public participation in government bond ownership.

ORI usually have shorter tenors—typically 3 to 5 years—and offer fixed coupon rates. The coupons are paid monthly to investors.

2. Retail Sukuk (SR)

SR are sharia-compliant government bonds. These bonds follow Islamic financial principles, meaning the returns come in the form of profit-sharing rather than interest.

3. Savings Bond Ritel (SBR)

SBR is designed for the general public looking for a safe investment with competitive returns.

These bonds typically have tenors of 2 to 3 years and offer fixed interest payments made monthly.

4. Sukuk Tabungan (ST)

ST is another sharia-compliant investment instrument issued by the Indonesian government, targeted specifically at individual Indonesian citizens.

ST is managed according to Islamic principles, avoiding elements of speculation (maysir), uncertainty (gharar), and interest (riba).

Benefits of Investing in SBN

Investing in SBN offers several advantages, making it an attractive option for many investors:

1. Safe and Guaranteed

The risk of default is very low since the Indonesian government guarantees these bonds. This makes SBN a relatively secure investment, especially for those who prioritize capital preservation.

2. Attractive Returns

SBN generally offers higher returns than traditional savings products like time deposits. The interest rates are competitive and paid regularly, allowing investors to enjoy stable passive income.

3. Good Liquidity

Some types of SBN can be traded in the secondary market, giving investors flexibility to sell before maturity if needed. However, note that certain conditions and holding periods apply.

4. Easy to Purchase

Buying SBN is now more accessible thanks to digital platforms like digibank by DBS Application, which lets you invest without visiting a bank or government office.

5. Portfolio Diversification

Adding SBN to your investment portfolio helps lower overall risk—especially useful if most of your funds are in higher-risk instruments.

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Risks of Investing in SBN

While SBN has many advantages, it is not entirely without risks. Here are some to consider:

1. Inflation Risk

This is a common concern in any investment. If inflation exceeds the interest earned from SBN, your purchasing power may decline. It’s important to factor in inflation when selecting SBN products.

2. Market Risk

SBN values can still fluctuate with changes in market interest rates. When market rates rise, the market value of existing SBN may fall. This poses a risk especially if you intend to sell before maturity.

3. Liquidity Risk

Certain SBN types like ORI and SR cannot be traded immediately in the secondary market. While they can be sold, liquidity may be limited, especially for longer-tenor products.

Buy SBN via the digibank by DBS Application

Here’s a step-by-step guide to purchasing SBN through the digibank by DBS Application:

1. Download and Log in

Make sure you’ve downloaded the digibank by DBS Application and have an active account. Log in using your username and password.

2. Register and Create SID

Tap the “Bonds” menu on the homepage. If you don’t have a SID (Single Investor Identification), register directly through the app.

3. e-SBN Registration

Once your SID is set up, continue by registering for the e-SBN service in the app to activate online bond purchases.

4. Choose Available SBN Products

In the Bonds menu, select from the SBN products currently on offer (e.g., ORI, SR, ST, SBR). Read the product details, including yield, tenor, and terms & conditions.

5. Place Your Order

Determine your purchase amount (minimum usually starts from IDR 1 million). Enter the nominal amount you wish to invest and confirm your order.

Make the payment as instructed by the app. The funds will be debited directly from your digibank account.
Once the payment is successful, you will receive a digital confirmation of your SBN ownership in the digibank by DBS Application.

Tips to Start Investing in SBN

Here are some tips to start investing in SBN safely and effectively, aligned with your financial goals:

1. Understand the types of SBN available.
2. Buy only from official distribution partners.
3. Prepare your documents and SID.
4. Check the SBN offering schedule.
5. Set your investment amount based on your capability.
6. Read the product details and associated risks.
7. Make payment on time.
8. Keep your investment ownership proof.
9. Apply a buy-and-hold strategy.

For Your SBN Investment, Trust DBS Treasures Priority Banking

SBN is a government-issued investment instrument used to fund national development. Retail SBN offers various options to suit your needs, such as SBR, ORI, SR, and ST.

Make DBS Treasures priority banking your trusted partner in SBN investment. Enjoy regular coupon payments with potential capital gains and competitive rates—typically higher than average time deposit interest.

Transact anytime, 24/7, with no extra fees via the digibank by DBS Application. You can buy, sell, switch, and even register your SID (Single Investor Identification)—all in one place.

You’ll also receive curated market analysis from our financial experts, powered by AI/ML technology, personalized to match your risk profile and portfolio needs. These insights come with tailored Grow (investment) and Protect (insurance) solutions—so you can invest confidently, through your preferred channel.

Start investing in Government Bonds easily, securely, and efficiently at this site.