SR018 or Retail Sukuk Series 18 is issued in 2 types, namely SR018-T3 (3-year investment period) with a 6.25% p.a coupon and SR018-T5 (5-year investment period) with a 6.40% coupon.

Understanding SR018 or Sukuk Ritel Series 018

Sukuk Ritel 18 or SR018 is a sharia investment instrument offered by the Indonesian government to individuals who are Indonesian citizens.

Investing in retail sukuk is an investment that is safe, easy, affordable, profitable, and compliant with shariah principles.

SR018 is issued in two versions, namely SR018-T3 and SR018-T5.

Issuer : Government of the Republic of Indonesia Offering period : 3 - 29 March 2023 Form : Scripless and tradable

SR018-T3 Nominal value per unit : Rp 1 million Minimum subscription : Rp 1 million Maximum subscription : Rp 5 billion Coupon rate : 6,25% p.a Tenor : 3 years Maturity : March 10, 2026 Tradeable starting : July 11, 2023

SR018-T5 Nominal value per unit : Rp 1 million Minimum subscription : Rp 1 million Maximum subscription : Rp 10 billion Coupon rate : 6,4% p.a

Tenor : 5 years Maturity : March 10, 2028 Tradeable starting : July 11, 2023

The following is a comparison of the Retail Sukuk to other types of government securities:

SR018 Investment Simulation

The following is a calculation of the monthly coupons investors receive when investing in SR018-T3 (6.25% per year) and SR018-T5 (6.40% per year).

The coupon tax is 10%, paid on the 10th of each month.

Example: If you invest Rp 1 billion in SR018-T3, you will get a coupon payment of Rp 4,687,500 every month on the 10th.

If you invest Rp 1 billion in SR018-T5, you will get a coupon payment of Rp 4,800,000 every month on the 10th.

Investment Risks of SR018

Investments in Indonesian State Islamic securities are free from the risk of default on principal and returns because there is a guarantee from the government (stipulated in Law Number 24 of 2002 concerning Government Securities).

The investment risks of SR018 are liquidity risk and market risk if the investor plans to trade in the secondary market.

Liquidity Risk

Liquidity risk occurs when investors experience difficulty selling this security on the secondary market at a reasonable (market) price.

Risk mitigation: Investors can sell their securities through distribution partners, banks, or other financial institutions or use it as a loan guarantee.

Market Risk

Market risk refers to the potential loss for investors if there is an increase in the benchmark interest rate (BI7DRRR), which causes a decrease in Retail Sukuk prices on the secondary market.

The following is an overview of the reference interest rate or BI 7-Day Reverse Repo Rate (BI7DRRR, formerly the BI Rate).

The last position of the benchmark interest rate was 5.75%. There is a chance of it rising to 6%, but room for rate hikes is limited.

The potential loss is reduced capital (capital loss) should investors sell this retail sukuk before maturity at a price lower than the purchase price.

Risk Mitigation: If the price declines, investors should not sell their retail sukuk in the secondary market.

Investing in SR018 Amidst the Trend of Increasing Interest Rates

SR018 is a good choice for investors pursuing SAFE, ATTRACTIVE RETURN based on SHARIAH principles.

The following is a comparison of SR018 to the previous series:

Regarding the SR018 coupon (2-year and 5-year series), the coupon is higher than the last series. This is because the BI7DRR reference rate has increased six times since early 2022.

Investors can use retail sukuk for additional income regularly. SR018 suits investors with medium-term investment goals of 3 – 5 years.

Additional Income for the Sandwich Generation

One of the characteristics of SR018 is the fixed rate of return paid every 10th of the month.

These fixed and routine benefits can be used as additional monthly income for the sandwich generation or retirees.

Paying Monthly Bill Expenses

Investors can take advantage of the returns that are distributed every month to pay fixed household bills, for example, electricity, water, internet, or insurance premiums.

3 - 5 Year Investment Horizon

SR018 can be used as an investment diversification because it is SAFE (guaranteed by the state), and the coupon is attractive. Judging from the investment period, SR018 is suitable for medium-term financial goals (3 – 5 years).

How to Purchase

You can order SR018 through the Moduit app or contact a Moduit Beyond Advisor directly.

You can become a Moduit Beyond client by contacting us on this form or reaching out to a Moduit Beyond advisor partner.

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