Government Bonds with DBS Treasures

Issued by the Government of the Republic of Indonesia

Guaranteed by the Law.

Comprehensive range of products

Variety of maturity period and currency options such as IDR, USD, and EUR.

Regular coupon payment

By investing in Bonds, you will receive regular coupons.

What is a Bond?

Bonds are debt securities issued by an institution (government, corporation, or other parties) to obtain funding. The bond issuer will repay all notes issued at maturity, with a certain coupon rate over the term of the bond.

Primary Bonds

Initial Public Offering Bonds at the offered price. These Bonds can only be purchased within a certain period. In addition, not all Bonds purchased in the Primary Market can be traded in the Secondary Market.

Secondary Bonds

Bonds that can be traded at any time before maturity with other investors. The maturity of Secondary Market Bonds usually varies, ranging from under a year to more than 10 years. The principal value follows the market, which leads to potential capital gains.

 

What are Government Bonds?

Government Bonds are one of the safest investment products because they have low risk. These Bonds are debt securities issued by the Government of Indonesia, then offered to the individual investors.

 
    1. Gain Coupons (Interest) Periodically

      The Bondholders will receive coupons regularly within the agreed period. There are Bonds that distribute coupons every month, every three months, or every six months.

    2. Capital Gain Potential

      Capital gain is the potential profit from selling bonds to general investors in the Secondary Market. This profit can be calculated from the difference in the selling price minus the purchase price of the Bonds. If you buy at a low price and sell at a high price, then you earn capital gain.

    3. Principal Refunded at Maturity

      In general, the default rate of return on principal by the Issuer of Bonds is relatively small although the risk of default remains. This risk only exists in Bonds issued by private companies. Meanwhile, refunds by the government are guaranteed by Law.

    4. Relatively Higher Bond Profits Than Deposit Interest

      The coupon value obtained from Bonds is generally relatively higher than the average Fixed Deposit interest rate. In addition, Bonds also provide the benefit of a fixed coupon, which is a measurable cash flow without the risk of changes in interest rates commonly found in Fixed Deposit.

      This can be considered by most investors in buying Bonds to gain the maximum profit possible.

    5. Can be used as Collateral

      Not many people know that Bonds can also be used as collateral to apply for a bank loan. In addition, Bonds can also be used as collateral to buy shares on the stock exchange. The benefits of Bonds can multiply.

    6. Help Diversify Your Portfolio

The success of your investment strategy will significantly depend on your asset allocation. Don't make the mistake of only investing in one type of asset.

Investing in bonds has the potential to help stabilize your portfolio. Bond investing provides a regular stream of income, an important portfolio element for many experienced investors.

 

Types of Government Bonds

  • Government Bonds with Conventional IDR currency: FR & PBS. Indonesian Government Bonds FR & PBS Series are debt securities issued by the Government within a certain period with a fixed coupon, in which case the Issuer guarantees the return of the principal amount at maturity plus coupons to be paid periodically. Click here for further information.

  • Government Bonds with Retail IDR currency: SR & ORI.  Indonesian Government Bonds SR & ORI Series are debt securities issued by the Government within a certain period in the Domestic Primary Market with a fixed coupon, in which case the Issuer guarantees the return of the principal amount at maturity plus coupons to be paid periodically. Click here for further information.

  • Government Bonds with USD currency: INDON & INDOIS  Indonesian State USD Bond Series INDON and INDOIS are debt securities issued by the Government of the Republic of Indonesia for a certain period in USD denominations with fixed coupons, in which case the Issuer guarantees the return of the principal amount at maturity plus coupons to be paid periodically. For more information about INDON click here & INDOIS click here for further information.

  • Government Bonds with EUR currency: INDONEUR. Indonesian State EUR Bond Series (INDONEUR) is a debt security issued by the Government of the Republic of Indonesia within a certain period in EUR denominations with a fixed coupon, in which case the Issuer guarantees the return of the principal amount at maturity plus coupons to be paid periodically. Click here for further information.

 

Features and Benefits of Government Bonds Investment with DBS Treasures

Regular Coupon

Provides regular income through coupons that are paid periodically during the investment period by the Bond Issuer.

Capital Gain Potential

Certain types of Bonds can be sold at any time before maturity with potential profits from the increase in Bond prices.

Competitive Coupons

Provides competitive coupon rates above the average interest rate of Fixed Deposit.

No Additional Fees

Only the spread or the difference between the selling price and the buying price (bid and offer).

24/7 Transactions

A wealth of Bond products available for trade on the digibank by DBS Application

 

Terms of Government Bonds Investment with DBS Treasures

  1. Minimum age of 18 years or married
  2. Have an e-KTP
  3. Have NPWP
  4. Have an account with DBS Treasures priority banking
  5. Fill in the form provided by DBS Treasures
 

How to Invest in Bonds

  1. Create Single Investor Identity (SID) on digibank by DBS Application if you don’t have it already.
  2. Choose between Primary Bonds (during offer period) or Secondary Bonds.
  3. Decide on your preferred between IDR or USD.
  4. Select the product based on your risk profile, preferred coupon or yield, and maturity period.

Discuss Bonds investment further with DBS Treasures by becoming a priority banking Client, minimum fund placement of IDR 500 mio. Gain personalised wealth management strategy that is communicated to you, so you can make accurate decisions confidently.

how to invest bond

Discuss Now

 

FAQ About Government Bonds

Guaranteed by Law so it is safe for investors. Several types of Government Bonds can be traded, which allows the potential for capital gains if they are sold when the price is on the rise.

Some types of Government Bonds cannot be traded and must wait for maturity. Market dynamics can reduce the principal value of Government Bonds, causing losses if they need to be disbursed before maturity.

Investors buy Government Bonds with a predetermined minimum amount of funds. Coupons will be deposited directly to the Customer's account periodically until the maturity date, when the invested funds will be returned.

Coupons will be deposited directly into the Customer's account periodically until maturity.

  1. The profit from the coupon is calculated from the percentage of the coupon value that will be obtained every year. If the coupon payment schedule is twice a year, then the amount is divided by two and reduced by the 10% Bond coupon tax. Coupon payments will continue until maturity, with the total value known as yield to maturity.
  2. Profits from capital gains are obtained by selling bonds in the Secondary Market at a higher price than the purchase price. These prices, depending on market dynamics and demands, are known as par prices or 100% face value, premium prices (above par), and discount prices (below par).
  3. Accrued interest or current interest is obtained by the seller of the Bonds when the Bonds are purchased between the coupon payment dates. For example, the coupon payment schedule is January 1 and July 1. When there is a transaction on April 1, then the buyer must pay the current interest from January 1 to April 1 to the seller.

For more information on calculating Bond profits, click here.


Certain types of Government Bonds can be traded in the Secondary Market to other investors, anytime and from anywhere through the digibank by DBS Application.

 

Secondary Market Bond Cash Reward Promo on digibank App by DBS

Gain cash rewards for purchasing Bonds in the Secondary Market through the digibank by DBS Application. Terms and conditions apply here.

 DISCLAIMER

Bond is capital market product, not banking product and not savings nor deposit and not guaranteed by PT Bank DBS Indonesia (“Bank”) and not included as object of guaranteed program. Investing in Bond subject to risk, including possible loss of principal amount invested. Past performance is not indicative of future results. Bond price can fluctuate in accordance to market conditions.

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