Since 2006, state bonds can not only be bought by other countries, companies or conglomerates. That year, for the first time Indonesia issued Indonesian retail bonds, or more popularly called ORI.
Bonds are issued and may be purchased by small investors. Those who only have IDR 5 million can invest by buying ORI. When it was first published, ORI was able to raise Rp3,283 trillion in funds.
Until now, the government has issued ORI 13 times. In general, ORI is issued in one series every year, but the government has issued ORI twice a year in 2007 and 2008.
According to Ministry of Finance data, the total funds raised from ORI until 2015 have reached Rp144.125 trillion. More than 200 investors have participated.
Then what’s the benefit of buying ORI?
Every debt letter certainly yields returns. In debt securities, the yield is called a coupon. Debt issuers determine the amount of the coupon. Usually, bond coupons are pegged higher than deposit interest. Because if it’s the same, deposits are certainly preferred, because the tenor is not too long.
Likewise with ORI. Since the first time it was issued, the ORI coupon is always higher than the deposit interest. And because he was published by the government. There is very little chance of default. Even if that happens, there are usually guaranteed government assets.
The size of the ORI coupons varies per series. It was adjusted to Bank Indonesia’s current interest rate. The highest ORI coupon ever touched 12.05%, this happened in 2006, the first ORI. While the lowest coupon occurred in the ORI009 series, which was only 6.25 percent.
In terms of security of investing, it is certainly safer than buying corporate bonds. If the company is bankrupt, instead of profit, the money invested may not return.
According to Farah Dini Novita, a financial planner, for novice investors or conservative investors, the offer to invest in ORI is quite tempting. “Because every month there are paid coupons such as deposits plus a money back guarantee after maturity,” he said.
In addition to higher returns, another advantage of buying ORI is the smaller tax on deposits, which is only 15 percent. While the deposit tax is pegged at 20 percent. The value of money guaranteed on deposits is also smaller, the maximum is only Rp2 billion.
If Sri Mulyani said, by buying ORI, the community indirectly participates in development whose benefits are also felt by the community itself.
Many consider that investment in state bonds does not provide maximum returns because only giving coupons is slightly higher than deposits. When compared to stock investment, he lost far.
This assumption was successfully brushed aside by the performance data between assets compiled by Bahana TCW Investment Management last year. In the last ten years, state debt securities – including the ORI in them – have scored 201.3 percent with an average growth of 12 percent.
That number is close to the performance of the composite stock price index which is at 249.6 percent for ten years and an average of 15 percent every year.
“Investment in these state bonds must be looked at, if we look at it, its performance is close to the stock performance,” said Director Bahana, Budi Hikmah. SUN gains for ten years far exceeded the ten-year deposit rate of only 59.2 percent or an average of 4.6 percent per year.
But of course, the ORI period is usually only two or three years. The longest ORI tenor ever issued is five years, namely the ORI005 series published in September 2008.
Besides the issue of profit and security, the advantage of ORI is that it can be traded on the secondary market. So investors do not always have to wait for maturity, as if he placed funds on deposits.
So, if you want to invest a minimum of five million and don’t want to risk such stocks and mutual funds, buying ORI can be an option.