ST009 is a government savings bond managed according to sharia principles; it starts offering on IPO from November 11 - 30, 2022. ST009 is the last government bond to be issued by the government in 2022.

The minimum purchase of ST009 is 1 million rupiahs and in multiples thereof, while the maximum investment per investor is 2 billion rupiahs. The tenor of ST009 is two years.

ST009 offers a floating floor coupon of 6.15%. In the ST009 coupon calculation, the floor definition is the same as the benchmark interest rate (BI7DRR) plus the spread or difference between the BI7DRR and the total coupon received by investors. Currently, the BI7DRR is at 4.75%. Therefore, ST009's spread is 1.4% because the total coupon is 6.15%. The coupon rate is adjusted based on BI 7-Day Reverse Repo Rate changes every three months. The total coupon amount calculation is as follows: BI7DRR + spread, also known as the floor. The benefit of floating with a floor coupon is that no matter what changes occur with the BI7DRR, the ST009 coupon rate cannot fall below this minimum limit. In other words, ST009's return can increase but cannot drop below the floor.

So what exactly does the return comparison between ST009 and other similar investment products?

Compared to time deposits, the ST009 return appears to be higher and more appealing. It can be assumed from the BI7DRR's current position that deposit rates are in the 5% - 6% range, while the net return after the 20% time deposit tax deduction is 4% - 4.8% p.a. On the other hand, the net return of ST009 after the 10% tax deduction is 5.535% p.a. So, from this calculation, the comparison can conclude that the ST009 return is 15% - 38% higher than that of time deposits.

Another similar investment product is money market mutual funds with placements in instruments with a tenor of one year or less. Returns from money market mutual funds are in the 3.5% - 4% range. Money market returns are net and do not have further tax deductions. This calculation shows that the ST009 return is 38% - 58% higher than the return of money market mutual funds.

Comparison Calculation Table