What is the Difference between SR & ORI Series?

What is the Difference between SR &ORI Series Government Bonds?

There are several Government Securities products or Surat Berharga Negara (SBN) issued by the government, some of which are SR (Sukuk Ritel Indonesia) and ORI (Indonesian Retail Bonds), What make these two different from each other?

Before we discuss further, we must first understand what Government Bonds are.

What are Government Bond?

The definition of Bonds is a term in the capital market refer to a "debt statement" from the issuer of the Bonds to the Bondholders. Of the various types of Bonds, government Bonds are one of the safe investment products due to their relatively low risk. Bonds of this type are debt securities issued directly by the Government of Indonesia, then offered to the public.

The way Bonds works is that the government will pay a Bond debt to the investor until it reaches maturity and brings in by returns, usually referred to as coupons.

SR and ORI coupons are usually paid to the investors by the government on a monthly basis. The amount of this coupon will be the same every month, so fluctuations in the securities market, does not affect the price of the Bond.

These Government Bonds are also different from other types of Bonds. Government Bonds has a different set of characteristics, which as follows:

1. Has the potential for capital gains and loss
2. The coupon has a fixed rate
3. Investors can trade these Bonds on the Secondary Market
4. The minimum purchase of this bond is IDR1 million and a maximum of IDR3 billion

Types of Government Bonds

In general, there are two types of Bonds offered by the government, namely conventional and sharia Bonds.

1. Conventional Bonds

Bonds from the government or what is commonly called government securities (SBN) use conventional principles similar to most financial products in general. Usually known as Government Bonds or Surat Utang Negara (SUN).

It also has two types, namely Surat Perbendaharaan Negara (SPN) and the Government Bond. Both types of Bonds are usually offered through an auction process and private placements to institutional investors that has a large demand. Both can also be offered through the secondary market.

2. Sharia Bonds

As the name suggests, this type of bond does not contain elements of usury (usury), maysir (gambling), and gharar (obscurity) in accordance with sharia principles. So that there is no coupon for investors, but in the form of profit sharing according to the ijarah contract.

This Bond is usually known as Surat Berharga Syariah Negara (SBSN) and can be purchased by investors and retail investors.

Differences between Government Bonds ORI series and SR

Anyone with enough capital can buy Bonds. From sharia and conventional, ORI (Obligasi Ritel Indonesia) and SR (Sukuk Ritel Indonesia) are the most popular.

SR is one of the SBSN issued specifically for retail by the government, but has sharia management principles.

Both Bonds have similarities and differences as follows.

Indonesian Retail Bonds (ORI)

1. Can be traded with Indonesian citizens
2. It is scripless and can be traded between domestic investors in the Secondary Market.
3. Has a fixed rate that is paid monthly
4. Has the potential for capital gains and loss
5. Have a minimum purchase of IDR1 million and a maximum purchase of IDR2 billion
6. Has a tenor length of 3 years

Indonesian Retail Sukuk (SR)

1. Can be traded with Indonesian citizens
2. Follows the sharia investment management principles
3. Can be ordered with a minimum of IDR1 million
4. Have a fixed reward rate in accordance with the contract and paid every month.
5. Have a tenor with a period of 3 years
6. Can be traded through the Secondary Market to other investors.

In conclusion, Bonds is in an optional investment product to consider. In addition, it has a variety of timeframes, ranging from 1 to 10 years so it is very suitable to be used as a short-term and long-term investment.

Bonds are also divided into 2 types, namely conventional Bonds and syariah Bonds. With the most reached products are ORI and SR. Both can be purchased independently with the same minimum and maximum level of purchase. However, in terms of the capital gain, both have differences with ORI which uses coupons while SR uses a predetermined return agreement.

In addition, ORI and SR each have a tenor period of 3 years, and are more suitable for medium-term investments.

Invest Government Bonds Safely and Easily with DBS Treasures

You can invest in Bonds in DBS Treasures priority  banking. In addition to the two types of Bonds above, DBS Treasures also provides a variety of other Bonds of your choice. Here are some types of Bonds provided by DBS Treasures.

1. Conventional Government Bonds in IDR: FR and PBS.
2. Ritel Government Bonds in IDR: SR and ORI.
3. Government Bonds in USD: INDON and INDOIS.
4. Government Bonds in EUR: INDONEUR.

You can invest in Bonds through DBS Treasures and can gain several benefits such as follows.

1. The Bonds offered through DBS Treasures are guaranteed by the Indonesian Act as they are issued directly the government. So, you can guarantee its authenticity.
2. Provides a wide range of options according to the available currency and timeframe. You can invest in a Bond type with IDR, USD, and EUR currencies with a variety of tenor options offered.
3. There are regular coupons for payments. So, every month you will get potential benefits in the form of coupons that are paid periodically in accordance with applicable regulations.
4. In addition to having regular coupons that are paid periodically, coupons from Bond investments also have a very competitive value with a value above the average time deposit.
5. You also don't need to spend additional funds when buying and selling due to the price difference between the two. So, you can save more funds when investing in this Bond.
6. Transactions at DBS Treasures can also take place 24/7 from the digibank Application by DBS with a variety of products being traded. Each product certainly has a variety of advantages offered. So, you have many choices of wanting to invest in the type of Bond that suits your preferences.

How to Invest in Bonds in the digibank Application by DBS

1. You can create a Single Investor Identity (SID) in the digibank Application by DBS if you don't have one yet. SID is your identity as an investor who is officially registered with the KSEI (Kustodian Sentral Efek Indonesia).
2. You can choose between Market Prefund Bonds (during the offering period) or Secondary Market Bonds.
3. You can specify the desired investment denomination between IDR or USD.
4. Then choose a product that matches your risk profile, potential profits in the form of coupons or returns, as well as the right maturity time for you.

Start investing confidently in Government Bonds with DBS Treasures and enjoy the benefits.