The Ministry of Finance has issued Indonesian Retail Government Bonds (ORI) ORI026 series where there are two series in one offering period, namely ORI026-T3 with a 3-year tenor and ORI026-T6 with a 6-year tenor. The issuance of the ORI026-T6 series is a Retail SDG Bond that supports Indonesia's sustainable development goals. SDG Bond Retail is used in funding sustainable development projects or in line with the efforts of the Sustainable Development Goals (SDGs). The SDGs are sustainable development goals drafted by the United Nations (UN) designed to address various interrelated global challenges such as poverty, inequality, climate change, environmental damage, as well as peace justice, and prosperity for all.

The ORI026 offering period starts from September 30 to October 24, 2024. This bond has a fixed rate coupon, which provides investors with a predetermined coupon rate until maturity. The following is the tenor and coupon rate of ORI026:

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The main advantage of ORI026 lies in the fixed rate coupon offered. This means that the returns received by investors will remain the same throughout the investment period, unaffected by fluctuations in market interest rates. For investors, the fixed rate coupon provides certainty of stable and reliable income. That way, even if market conditions change, ORI026 investors can still enjoy predictable returns, making it an ideal choice for those who want stability in their investment portfolio.

Why should you invest in SBN ORI026?

Investing in Indonesian Retail Bonds (ORI) ORI026 series provides various benefits that make it more attractive to investors. Here are some of the main reasons why ORI026 is worth considering as an investment option:

1. Attractive Fixed Rate Coupon

One of the main advantages of ORI026 is the fixed rate coupon or fixed return throughout the investment period. This gives you certainty about the amount of return you will get every coupon payment period.

2. Safe and Guaranteed by the Government

Investment in ORI026 has high security because it is guaranteed directly by the Indonesian government. This provides peace of mind for investors, because investment in this instrument can be said to be very safe because the principal and coupon payments are 100% guaranteed by the state with the legal basis of Law Number 24 of 2002 concerning Government Securities.

3. Tradable in the Secondary Market

ORI026 is a tradable bond or SBN that can be traded in the secondary market after the Minimum Holding Period (MHP) has passed. This provides flexibility for investors who may need urgent funds before the bonds reach maturity.

The advantage of selling Government Bonds in the secondary market is the potential for capital gains if the Bonds are sold at a higher price than the purchase price after taking into account transaction costs in the Secondary Market. Investment instruments in Government Bonds are now increasingly attractive, especially after a significant change in the yield curve, which continues to decline across the curve, indicating that the price of Government Bonds is getting stronger. Therefore, the potential for capital gains from selling Government Bonds in the secondary market is now more profitable.

4. Higher Return and Lower Tax Rate than Other Investment Instruments

One of the main reasons investors choose ORI026 over other investment instruments such as time deposits is because of its higher returns. ORI026 offers tax advantages, where income tax on coupons is only 10%, much lower than deposits which are taxed at 20%.

5. Contribution to Sustainable National Development

Investing in ORI026 not only provides financial benefits, but is also a form of direct contribution to the country's development. ORI026 comes as a Retail SDG Bond for individual investors, where the funds from ORI026 will be used in financing sustainable development projects or SDGs.

6. Easy Online Purchasing

In the digital era, investing in ORI026 is getting easier. You can purchase it online through various banking platforms such as M2U ID App. This makes the purchase process easier without the need to physically visit the bank.

Important ORI026 information

Before deciding to invest in ORI026, you should understand the terms and conditions that apply, including:

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ORI026 Return Simulation

The following is a return simulation based on the investment amount, coupon, and tenor chosen. This simulation already takes into account 10% income tax withholding.

ORI026-T3 Simulation with 3 Years Tenor and Fixed Coupon Rate 6.30% per Year

*)Return after 10% income tax deduction

Simulation of ORI026-T6 with 6 Years Tenor and Fixed Coupon Rate of 6.40% per Year

*)Return after 10% income tax deduction

How to Buy SBN ORI026 via M2U ID App