JAKARTA. The Indonesian government has officially started offering the Savings Bond Retail instrument series SBR006 on Monday (1/4). The instrument offered online is intended to deepen the financial market, as well as the Indonesian retail investor base.
Director of Government Debt from the Ministry of Finance's Directorate General of Financing and Risk Management Loto Srinaita Ginting said the ministry continues to seek the issuance of debt instruments that can accommodate the needs of retail investors.
"It is expected that SBR006 can increase the number of domestic investors," he said on Monday (20/8) in the SBR006 launch event.
In the SBR006 offer, the government has set an indicative target of Rp 2 trillion with a maximum target of Rp 5 trillion. However, there is a possibility that the target will increase depending on investor interest in SBR006.
This instrument has a floating coupon of 7.95% which can change following the movement of BI's benchmark interest rate. This number also applies as a minimum coupon, so that when the BI reference rate drops, the SBR006 coupon will not be lower than 7.95%.
Currently Bank Indonesia still maintains the benchmark interest rate (BI 7-DRR) at the level of 6%. This coupon rate has a spread of 195 basis points (1.95%). When compared to the previous series, the latest bonds offer lower coupons. SBR005 offers a coupon of 8.15%.
Mr Ginting is optimistic that the coupon rate is considered premium and attractive for retail investors. It can even repeat or exceed the achievement of SBR005. The outstanding SBR so far which has not yet matured is Rp 117 trillion. (AM/MS)