SBR012 Savings Bond Retail Series 12 is issued in 2 types, SBR012-T2 (2 years investment period) with a coupon of 6.15% p.a and SBR012-T4 (4 years investment period) with a coupon 6.35%. What's interesting about SBR012?

Understanding SBR012:

Savings Bond Retail 12 or SBR012 is an Indonesian government bond. The difference between SBR012 and previous series is that SBR012 has two variations, SBR012-T2 and SBR012-T4.

Issuer : Government of the Republic Indonesia Offering Period : 19 January 2023 - 9 February 2023 Specifications : Non-Tradeable

SBR012-T2 Nominal value per unit : IDR 1 million Minimum subscription : IDR 1 million Maximum subscription : IDR 5 billion Coupon rate : 6,15% p.a Tenor : 2 years Maturity : 10 February 2025 Early redemption : 26 February 2024 to 5 March 2024

SBR012-T4 Nominal value per unit : IDR 1 million Minimum subscription : IDR 1 million Maximum subscription : IDR 10 billion Coupon rate : 6,35% p.a Tenor : 4 years Maturity : 10 February 2027 Early redemption : 24 February 2025 to 4 February 2025

SBR012 Investment Simulation

The following is the calculation of the monthly coupons obtained by investors from floating floor coupons of SBR012-T2 (6.15% per year) and SBR012-T4 (6.35% per year).

Coupons are paid on the 10th of each month and are taxed at 10%.

Example: If you invest IDR 1 billion in SBR012-T2, you will get a coupon payment of IDR 4,612,500 every month on the 10th.

If you invest IDR 1 billion in SBR012-T4, you will get a coupon payment of IDR 4,762,500 every month on the 10th.

Investing in SBR012 During Increasing Interest Rates Trend

SBR012 is perfect for investors pursuing SAFE and ATTRACTIVE RETURN, because SBR012 is guaranteed by the government.

Several things that make SBR012 interesting:

Increasing Interest Rates Trend and Floating with Floor Coupon

On the same day the launch of SBR012, Bank Indonesia increased the interest rate by 0.25% (25 basis points) from 5.50% to 5.75%.

Take a look at the interest rate data below:

The reference interest rate (BI 7-day reverse repo rate) is likely to return to pre-COVID levels (around 6.00%). This means that there is still room for an increase in interest rates of approximately 25 basis points.

Based on information from the Ministry of Finance, the basis for determining coupons is: SBR012-T2: BI 7DRR 5,50% + spread 65 bps SBR012-T4: BI 7DRR 5,50% + spread 85 bps

If the BI 7DRR increases from 5.50% to 6.00%, the SBR012-T2 coupon will be 6.65% and the SBR012-T4 coupon will be 6.85%.

The following is a comparison of the SBR012 with previous series:

SBR012’s coupon is larger than the previous series (both 2 years and 4 years series). This is because the BI7DRR reference rate has increased 6 times since early 2022.

Early Redemption

One of the characteristics of SBR012 is that it cannot be traded on the secondary market, but has an Early Redemption window.

Several important points regarding the early redemption window:

• Investors are eligible to receive partial redemption of SBR012 principal before maturity.
• Minimum ownership of IDR 2 million at Distribution Partner where early redemption is to be exercised.
• The maximum amount that can be submitted for early redemption is 50% of the total investor ownership.

Can Be Used as an Asset Diversification Tool

SBR012 can be used as an investment diversification tool because it is SAFE (guaranteed by the government) and the return is attractive. Judging from the investment period, SBR012 is suitable for medium-term financial goals (3 – 5 years).

How to Subscribe

You can subscribe to SBR012 via the Moduit app or contact a Moduit Beyond Advisor.

You can become a priority client by joining as a Moduit Beyond client. To do so, please can contact us using this form or contact a Moduit Beyond Advisor Partner.

Moduit Beyond is a Wealth Management service offered in partnership with experienced financial advisors. PT Moduit Digital Indonesia is an investment advisory company under OJK (Decree: KEP-30/D.04/2019).