Towards the end of 2023, the government issued another Retail Government Securities (SBN). This time, the ST011 series will be offered from 3—29 November 2023. This is the second savings sukuk product issued in 2023 after ST010 in May 2023.
As with other types of Retail SBN, Savings Sukuk also guarantees equally favorable returns. Moreover, this investment product is suitable for investors who prioritize Sharia principles in managing their assets. However, investors should know the differences between ORI, SR, and ST before investing.
Differences between SR, ORI, SBR, and ST for Investors
Many aspects make each product different. Here are the differences between each type of Retail SBN.
The government sets different tenors for each type of Retail SBN. ORI and SR products have relatively longer tenors. According to the previous release, the government set ORI and SR with a tenor of 3 to 6 years.
As opposed to ORI and SR, Saving Bond Ritel (SBR) and Savings Sukuk (ST) offer faster tenors. For example, the previously issued ST010 product has a tenor of 2 and 4 years.
2. Yield/Coupon Rate
Yield/coupon is the return paid by the government to all investors. The coupon value varies depending on the type of investment product issued. ORI coupons and SR yields have a fixed value and will not be affected by changes in Bank Indonesia’s interest rates. On the other hand, SBR and ST yields are floating with floor, which can change if the interest rate set by the government rises, but will not be lower than the yield set at the beginning (floor).
3. Secondary Market Trading
Asset ownership can also be a differentiating aspect of SBN investment. ORI and SR products are tradable investment assets. This means that their assets can be traded back in the secondary market before maturity once the holding period set by the government is over.
On the other hand, SBR and ST are not tradable assets, which means they cannot be traded in the secondary market. Consequently, investors need to wait until the maturity period. However, these two products have an early redemption feature that allows investors to withdraw 50% of their capital during the early redemption period.
4. Capital Gain Potential
For tradable assets, investors have the opportunity to get capital gains. Especially for investors who want to get more profitable results. Meanwhile, investors who own non-tradable assets cannot get potential capital gains.
5. Halal Status
There are two types of investment asset management in SBN, namely conventional and Sharia-compliant. In ORI and SBR, the government will manage the funds with a conventional system. Unlike the ST and SR, which have obtained a halal fatwa from DSN-MUI, which makes their management adhere to Islamic law.
The Offering of SBN ST011T2 and ST011T4 (green sukuk)
The ST011 offering period starts from 3—29 November 2023 and is available for all Indonesians. Similar to the previous ST series, ST011 will be released in two (2) tenors namely ST011T2 with a 2-year tenor and ST011T4 with a 4-year tenor. To support nature conservation, the government through the ST011T4, which is a green sukuk, will be used to finance green projects that have a positive impact on the environment.
As the name implies, Savings Sukuk is similar to a bank savings deposit. Yields on both ST011T2 and ST011T4 will be paid monthly over a predetermined period. The capital or principal will also be paid back by the government at maturity.