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Investment from Indonesians for Indonesia
“Life is what happens when you’re busy making other plans” is a famous quote repeated by people worldwide. However, some would beg to differ.
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“Life is what happens when you’re busy making other plans” is a famous quote repeated by people worldwide. However, some would beg to differ. The world is diving headfirst into a global recession before it has time to breathe as it comes out of the pandemic. Contrary to the saying above, living life and planning for the future are complementary.
In the interest of economic recovery, the Indonesian government has outlined investment as one of the segments providing the best backbone for recovery. Obligasi Negara Ritel, or Retail State Bond (ORI), is a government securities (SBN) investment product offered by the Republic of Indonesia that is safe, affordable, easy and profitable.
While the government issued the first securities after the country gained independence, a new feature has been added, and the ORI022 can be traded on the secondary market to other domestic investors. The registration period was opened at the start of the year, with the offering period starting on Sept. 26, 2022 and continuing until Oct. 20, 2022. The ORI022 becomes due on Oct. 15, 2025.
A couple of things set the ORI022 apart from other investments, particularly as it is an investment product that aims to develop the country’s infrastructure within a certain period. The existence of the ORI022 can therefore benefit individuals or the whole country by financing national development.
Moreover, unlike other retail savings bonds, the ORI offers a fixed return on investment (ROI) of 5.95% per annum, instead of the floating rate used by other investment products. This means the rate remains the same until maturity, so the ORI022 offers a way to enjoy life without worrying about the future. The amount of ROI is guaranteed 100 percent by the Indonesian government.
The coupon and principal payments to maturity are guaranteed by law, and the funds are provided annually by the State Income and Expenditures (APBN), or the state budget. Investors pay on a monthly basis over a three-year term to maturity, as mentioned. The fixed coupon rate, which carries a fixed interest rate until maturity, is paid regularly, with the first coupon payment expected on Dec. 15, 2022.
With an SBN tax of 10 percent, individuals who opt to trade their investment may offer it for higher than the average deposit. It is also easy to trade, as the ORI022 is liquid and can be sold over the counter until it becomes due.
To purchase the ORI022, the minimum investment is set at an affordable rate of Rp 1 million, while the maximum investment is currently set at Rp 5 million. Investors must be Indonesian citizens with a national identity number (NIK) and a taxpayer identification number (NPWP). It is currently available for purchasing at commercial banks, brokerage firms, special securities companies (APERD Fintech) and fintech companies (peer-to-peer lending).
With a few simple steps, investors can order the ORI022 from BRI, as it has been appointed as one of the custodians of the ORI022. Investors are required to register through a BRI Branch Office (KC and KCP) or a BRI Priority Branch (SLP) to obtain a Single Investor Identification (SID) and Securities Account. Following this, they are required to register with SBN Online BRI, and then place their order for the ORI022. A billing code will then be generated, and the payment can be made through various payment channels, including the bank teller, an ATM, internet banking, and the BRImo application, within a predetermined time limit.
After the payment has been made, investors will receive a State Revenue Transaction Number (NTPN) and a completed order notification through the payment channel used, or to a registered email address.
Each investor who orders the ORI022 from BRI during the offering period will also receive an exclusive direct gift. For more information, visit the dedicated ORI page on the BRI website (https:/bri.co.id/en/web/bri-prioritas/obligasi-negara-ritel).
