Understand What SBN is and How to Invest
01 September 2023
Bond Investment through M2U ID App
Surat Berharga Negara (SBN) are financial instruments issued by the Indonesian government to finance budget deficits and development projects. SBN is a form of investment that offers attractive potential returns for investors with a relatively low level of risk. When you invest in SBN , you are actually providing a loan to the government with a promise to return the principal and interest according to the stipulated agreement.
Basically SBN is divided into 2 types, namely:
1. Surat Utang Negara (SUN)
SUN is an investment instrument that is managed conventionally and provides returns in the form of interest that is paid periodically and the principal is returned at the end of the term. SUN is divided into Obligasi Ritel Indonesia (ORI) and Savings Bond Retail (SBR).
2. Surat Berharga Syariah Negara (SBSN)
SBSN is an investment instrument that is managed according to Sharia and provides returns in the form of rent (ujrah) every month. In addition, SBSN represents partial ownership of existing assets or projects. So, as an investor, you will get a share of the profits that the project generates according to the agreement. SBSN is divided into Sukuk Ritel (SR) and Sukuk Tabungan (ST).
Following is a table of differences in the types of SBN.
| Type | ||||
| SR (Sukuk Ritel) | ORI (Obligasi Ritel Indonesia) | SBR (Savings Bond Ritel) | ST (Surat Utang Negara Syariah Sukuk Tabungan) | |
| Coupon Purpose |
Fixed paid each month |
Fixed paid each month |
Floating with floor, paid each month | Floating with floor, paid each month |
| Term |
3 Years |
3 Years |
2 Years |
2 Years |
| Traded in the secondary market |
Tradable |
Tradable |
Cannot but early redemption (liquidate in the beginning) up to 50% |
Cannot but early redemption (liquidate in the beginning) up to 50% |
| Potential Capital Gain |
Available |
Available |
Not Available |
Not Available |
| Government Guarantee |
100% guaranteed by the government |
100% guaranteed by the government |
100% guaranteed by the government |
100% guaranteed by the government |
| Min. Purchase |
IDR 1 million or multiple |
IDR 1 million or multiple |
IDR 1 million or multiple |
IDR 1 million or multiple |
| Max. Purchase |
IDR 2 Billion |
IDR 2 Billion |
IDR 3 Billion |
IDR 3 Billion |
For more information about SBN and information on SBN products available at Maybank Indonesia, you can visit this page.
From the various types of SBN, why are SBN currently in great demand by investors? The following reasons make SBN a popular investment alternative, such as:
1. Stability
SBN issued by the government is considered a relatively stable investment because the government has the ability to repay its debts.
2. Portfolio Diversification
Investments in SBN can help investors diversify their portfolios because they have different risks than stocks or other investment instruments.
3. Attractive Yield
SBN often offers a higher rate of return than deposits at a bank. This makes investors interested in seeking fixed income from SBN investments.
4. Liquidity
SBN tends to have good liquidity in the secondary market, enabling investors to buy or sell SBN easily.
If you are interested in starting to invest in SBN, you can start investing in SBN through the M2U ID App. Besides being able to carry out various financial transactions, you can also invest through the M2U ID App. To start investing in SBN, here are the steps you need to pay attention to:
- Login to the M2U ID App then click the navigation menu in the upper left corner of the screen on the account view.
- Choose ‘Investment & Insurance’
- Click ‘+’ button and choose ‘SBN’
- Select and click the yellow '+' button for the SBN product you want to order. Click (i) for detailed product info.
- Select the fund source account that was previously registered.
- Fill in the nominal value of the SBN order and then click 'Continue'.
- Read and tick to agree to all terms then click “Continue”.
- Verify your booking details then click 'Confirm & request TAC'.
- Enter the Secure2u passcode / TAC code.
- Your SBN order was successful. Then click 'Done'.
For further information on how to invest in SBN, you can visit this page.
For those of you who want to find a low-risk investment instrument with stable returns, investing in SBN through the M2U ID App could be the best choice.
Let's start investing through the M2U ID App now. Investing becomes easier with Maybank.
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