Sukuk Ritel is a promising investment instrument with minimal risk. In addition, the funds of this instrument are managed under Sharia – Islamic religious laws.
This investment type is quite suitable amid economic uncertainty. It’s a good idea to start preparing funds that you can use to invest in Retail Sukuk. Before that, you should first learn about Retail Sukuk along with the benefits below!
Introduction to Retail Sukuk
Retail Sukuk are Government Securities (SBN) that adheres to Sharia. These securities are issued by the government for people who wish to allocate their funds under Sharia principles and potentially obtain capital gains and periodic yields commonly known as passive income. Like all SBN products, Retail Sukuk has also been guaranteed by the government, making its risk fairly low.
Those who become investors will receive investment returns from the government. The yield calculation is adjusted to the investment principal and tenor. The government will pay the yield once a month.
At maturity, the government will return the entire investment principal. However, Retail Sukuk investors can also trade in the secondary market to get returns before maturity or potentially gain profits if sold at a higher price than the initial purchase price after factoring in transaction costs in the Secondary Market. In other words, this securities ownership can change hands.
Benefits of Retail Sukuk Investment
Investors of Government Securities can benefit a lot by allocating their funds to this investment. Here are the benefits that you can get from SBN:
1. Fixed, Competitive Yield
The appeal of Retail Sukuk stems from its relatively high return compared to the average interest rate on State-Owned bank deposits. Furthermore, it has a low tax rate of only 10 percent. This maximized the investor’s profit.
2. Relatively Affordable Capital
Investors can own these securities from a starting selling value of Rp1,000,000. Not only is it affordable, but it is also fairly easy to register and make a purchase at myBCA and is liquid because it can be both purchased and traded in the Secondary Market online.
3. Safe and Secure
The state guarantees the return of the principal and yield of SBN purchases. It is written in Law Number 19 of 2008 on Sharia-Compliant Securities, meaning that investors do not need to worry about the risk of default because it has been guaranteed by the Government and the funds are reserved in the State Budget every year.
4. Available for Sale in the Secondary Market
Holders of Retail Sukuk investments can also disburse their principal early which makes them liquid. Retail Sukuk can be traded in the Secondary Market. However, there is a risk of experiencing capital loss when the selling price is below the initial investment principal.
5. Managed under Sharia Principles
Retail Sukuk also gives investors more peace of mind in investing. It is because the entire fund management adheres to Sharia. The government also ensures that the management contains no element of maysir (gambling), gharar (deceit), and usury and has been declared sharia-compliant by the National Sharia Council – the Indonesian Ulema Council (DSN-MUI), and uses the Ijarah - Asset to be Leased structure.
6. Playing a Role in National Development
Another important thing is that the community can participate in the national development. The funds obtained from the issuance of Government Securities (SBN) will later be used to finance development. As a result, the public can also benefit from all the development carried out by the government.
7. Suitable for Medium-Term Investment
Retail Sukuk investment promised a return in 3—5 years. In other words, this investment is suitable for securing short to medium term funds. For example, parents who want to send their children to school or a dream to get a new car in a few years.
There you have it, information on Retail Sukuk and the benefits you can obtain from owning them. In 2023, the government of the Republic of Indonesia through the Ministry of Finance has prepared the issuance of various government securities, including Retail Sukuk.