ORI022, also known as the 22nd edition of the Indonesia Retail Bond series, is the latest government bond which is currently out on IPO until October 20, 2022. ORI022 has a 3 year tenor and a coupon rate of 5.95%. ORI022 also distributes coupon payments regularly every month and can be classified as a fixed income instrument. Because ORI022 is guaranteed by the government and is classified as having a short tenor, it can be considered a conservative or low-risk instrument.

That being said, what type of investment objectives can be met by ORI022? Because it is a fixed income security, this government bond can be a solution for investors who have a need for a regular cash flow. One example of how this can come into play is for retirees. If the investor has saved some money for his retirement, he can invest the funds in ORI022, and use the regular monthly coupon payments to finance his daily needs.

With a principal investment of 10 billion rupiah at a coupon rate of 5.95%, investors will receive a net return of IDR 535,500,000 per year after tax deductions. This means that by investing 10 billion rupiah, the investor will receive IDR 46,625,000 per month from the ORI022 coupon over the 3-year tenor period.

So for investors who are looking for fixed income solutions, ORI022 can be a considerable option. For investors who are interested, purchases can be made directly through the Moduit app.

Moduit is the distribution partner of PT Trimegah Sekuritas Indonesia Tbk.

PT Moduit Digital Indonesia is registered and supervised under Indonesia's Financial Authority (OJK).