The Jakarta Post
The government on Monday started issuing Retail Saving Bonds Series 003 ( SBR003 ), eyeing the participation of millennials as investors in the government’s debt papers.
Finance Ministry Financing and Risk Management Director General Luky Alfirman said in Jakarta on Monday that the bonds would be attractive to the domestic market.
“This instrument is a product of cooperation, involving the Finance Ministry, market players and other authorities in the financial market,” Luky said as reported by kompas.com.
He said SBR003 was expected to attract younger investors as the retail bonds would start from Rp 1 million (US$71.51).
“Usually, the SBN [government’s debt papers] investors are people over 40 years old, although we know that there are many younger people, who have been accustomed to the digital era. We have to optimize the market,”Luky said.
The SBR003 can be purchased online (e-SBN) with a coupon rate of 6.8 percent for the first three months from May 3 to Aug. 20. The rate will be adjusted every three months.
Luky said that the debt papers could not be traded on the secondary market. “Early redemption can be implemented after one year,” he added. (bbn)