May 2023 marks another good time to invest. It is because the government has re-issued Government Securities (SBN) Retail type of Savings Sukuk (ST) series ST010T2 and ST010T4 on 12 May—7 June 2023. This Savings Suku is a Sharia-compliant investment and is guaranteed by the State based on the SBSN and the APBN (National State Budget) law every year.
Furthermore, SBN Savings Sukuk is an affordable type of investment. It also offers benefits to investors who purchase the Sukuk Savings. For more details, let’s take a look at the explanation below.
Introduction to Savings Sukuk
Savings Sukuk is a Government Securities (SBN) intended for the public whose funds are managed using Sharia principles.
Savings Sukuk are similar to savings or bank deposits. However, the funds collected from the investors will be used to finance the government’s green projects. These funds will be returned in full within 2 years and 4 years depending on the series of the Savings Suku issued.
Given that Savings Sukuk adheres to Sharia, the fund management here is free from riba (interest), maysir (gambling), and gharar (obscurity). Investors will be provided with detailed information through a memorandum issued by the Ministry of Finance.
Even so, the issuance of Savings Sukuk is intended for everyone. To date, the government has issued Savings Sukuk series ST001—ST009 with purchases in multiples of Rp1 million.
Advantages of Savings Sukuk Investment
Here are the advantages of investing in Savings Sukuk:
- Available for purchase by all Indonesian citizens (WNI)
- Uses Sharia principles in managing the funds
- Subscriptions start from Rp1 million
- Relatively short repayment period of 2 years for ST010T2 series
- Floating with floor with a minimum limit
- Yield can be greater than the average interest on deposits from State-Owned banks and taxes are lower than deposits
- Offers an early redemption facility
Yields of Savings Sukuk Series ST010T2 and ST010T4
As of early May 2023, the government has not officially announced the coupon rate of ST010T2 and ST010T4. However, the promised amount of yield is usually not much different from the previous Savings Sukuk. The ST009 series offered a coupon rate of 6.15% p.a.
Arguably, the return value is higher than the average interest rate on State-Owned Bank deposits. Not only that, Savings Sukuk also has a floating coupon, whereby the rate will be reviewed every three months based on the BI 7-Day Reverse Repo Rate (BI7DRR).
If the rate of BI7DRR goes up, the yield of Savings Sukuk will also go up. Investors will also have the opportunity to obtain a higher return than what was initially guaranteed. Likewise, the same would happen if BI7DRR goes down. The yield received will also go down. However, investors need not worry because the Savings Sukuk has implemented a reduction limit.
Savings Sukuk Calculation Simulation
To illustrate the return, below is the simulation of Sukuk Savings using a return rate of 6.15% p.a. with the minimum investment value:
| Sukuk Savings Description | How to Calculate Yield | Value in IDR |
|
Investment Value of Savings Sukuk |
Rp1,000,000 |
|
|
Yield/year |
Rp1,000,000 x 6.15% p.a. |
Rp61,500 |
|
Yield/month |
Rp61,500 : 12 |
Rp5,125 |
|
Tax/month |
Rp5,125 x 10% |
Rp512 |
|
Net yield/month |
Rp5,125 – Rp512 |
Rp4,613 |
Next, let’s try to simulate the returns received with a return rate of 6.15% p.a. and the BI7DRR reference rate fixed or decreasing with some examples of investment values:
| Investment Value | Yield per Month | Tax 10% | Net Yield/month |
|
Rp2,000,000,000 |
Rp10,250,000 |
Rp1,025,000 |
Rp9,225,000 |
|
Rp100,000,000 |
Rp512,500 |
Rp51,250 |
Rp461,250 |
|
Rp10,000,000 |
Rp51,250 |
Rp5,125 |
Rp46,125 |
|
Rp1,000,000 |
Rp5,125 |
Rp512 |
Rp4,613 |
The entire net yield goes directly to the investor’s account every month. The yield can be higher if the BI7DRR reference rate rises.
Investor Suitable for Savings Sukuk
In general, here are some investors who are suitable for Savings Sukuk:
Do you want a safe and secured investment with guaranteed principal and return?
You can invest with confidence because Savings Sukuk guarantees the return of principal and yield. This is because it has been regulated in the SBSN law and whose funds are allotted in the State Budget every year so there is no need for investors to worry about the risk of default.
Offers Investment Tenors of 2 and 4 Years
These investments are suitable for those of you who have short-medium-term plans in the next 2-4 years. For example, saving money for your kid’s tuition fees or buying a new car.
Get Monthly Passive Income
With returns that are relatively higher than the average interest rate on state-owned deposits, investing in Sukuk Savings will be appealing to you. In addition, the tax for this Sukuk Savings investment is also lower at only 10 percent.
Comply with Sharia
As explained above, Savings Sukuk is managed under Sharia, making investors more confident in making investments. The government has assured that the management complies with Sharia and has been declared Sharia-compliant by the National Sharia Council – Indonesian Ulema Council (DSN-MUI), and employs the Ijarah - Asset to be Leased.
Contributing to National and Environmental Development
Equally important, investors are also supporting national development as well as the environment as this Savings Sukuk is a green sukuk whose developments are environmentally friendly projects.
Isn’t it interesting?
Register your investor data (SID) first through the myBCA app, and when the offering period opens on May 12, 2023, you can immediately start subscribing to the ST010T2 or ST010T4 series on myBCA.