The Jakarta Post
The government issued on Thursday this year’s first batch of retail savings bonds, one of 10 issuances scheduled for 2019, in a move to inspire more domestic investors and provide more investment alternatives to the public.
Finance Ministry government debt paper director Loto Srinaita Ginting has said that following Thursday’s issuance of retail savings bonds coded SBR005, the ministry would issue more retail bonds this year.
“Eight of those will be in the form of both conventional and sharia-compliant retail savings bonds, while the two others will be the tradable retail bonds,” Loto said during the SBR005 launch in Jakarta.
The issuance was part of the government plan to provide more investment alternatives to domestic investors, including millennials, she added.
Loto said it was also a way for the government to increase the participation of domestic retail investors to finance the country’s expenditure, particularly for human resources development and education.
“We will only allow investors of individual Indonesian citizens to buy these bonds,” she said.
Loto said the government was seeking a maximum turnover of Rp 5 trillion (US$355.92 million) from the issuance of SBR005. The issuance started on Thursday morning and ends on Jan. 24 with a floor yield of 8.15 percent.
As of 10.53 a.m. on Thursday, she said, the government had received Rp 53.4 billion in completed orders for the bonds. (bbn)