Vanesha Manuturi, a 25-yearold employee based in Bali, might have become one of the newest investors in the latest series of retail government bonds (ORI) had she found its yield more attractive compared to other types of investment.

However, she plans instead to invest in fixed-income mutual funds as it offers her a better return compared to the yield of 5.85 percent per year in the newest series of ORI, called ORI014, which was launched last month.

“Based on my calculations, it seemed the [ORI014] return made me less interested [in the retail bond],” she said on Monday.

Despite saying that ORI was one of the financial instruments with the fewest risks, she thought she would get the same benefits with relatively higher earnings from fixed-income mutual funds.

It is because fixed-income mutual funds are generally regarded as a safer investment, but with a lower potential return compared to other types of mutual funds as it carries with it short-term fixed income securities as its underlying assets, such as government bonds and treasury bills.

Declining interest in ORI was reflected in its realization on Monday, when the government collected Rp 8.94 trillion (US$660.8 million) in funds from ORI014 sales, far lower than the targeted Rp 13.4 trillion.

The 5.85 percent coupon rate of the tradable ORI014, which is offered in three-year tenors, was the lowest in history. In 2012 and 2016, the government offered 8.5 percent and 6.6 percent per annum respectively.

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