Do you have excess money to save but are clueless about how to do it? No need to worry! You can start by investing. Investment is not always complicated, nor does it require much time or huge capital. The government has issued two-year Saving Bond Ritel (SBR) Series 007. The Ministry of Finance offers the SBR007 from July 11, 2019 to July 25, 2019. The floating rate bonds can be purchased online (e-SBN). Want to set up a bright financial future for yourself? Let’s learn about the things you should know about SBR007 and let’s start investing!
To start investing, the first thing you need to do is to complete the online registration form through the 20 selling agents, one of them digibank by DBS. Registration is required to obtain the Single Investor Identification (SID) and securities account. The SID is issued by PT Kustodian Sentral Efek Indonesia (KSEI) within two business days via your registered e-mail. Registration can be made via the digibank application by DBS, which saves you the trip to a branch office as it can be done anytime and anywhere, branchless, paperless, signatureless. It’s very easy, isn’t it? The SID could be used to purchase various investment products!
Investment is often considered complicated and requires huge capital. Today, however, investment is far easier and can be made anytime, anywhere. Once you have obtained the SID, you can purchase SBR007 for as low as Rp1,000,000 (one million rupiahs) with a minimal coupon rate of 7.50%. Once the purchase is verified, you will obtain a billing code via digibank by DBS or email. The billing code is used to deposit funds based on the order. Once you complete the transaction using the billing code, you will get the State Revenues Transaction Number (Nomor Transaksi Penerimaan Negara, NTPN) and order completed notification and proof of SBR ownership via digibank by DBS and email.
The government applies the floating interest rate regime with a minimum coupon rate based on Bank Indonesia 7-day reverse repo rate (7-DRRR). Based on the regime, the SBR coupon size is adjusted to changes in the key interest rate every three months. Still, there is no need to be worried about it as the floor value of the SBR007 coupon is 7.50% and the value will not fall below the figure. Buyers will receive coupon payment on the 10th of every month; the first coupon payment will be made on September 10, 2019.
The SBR cannot be traded on the secondary market or withdrawn at anytime. Still, there is no need to be worried as the government applies the early redemption system that allows you to withdraw your SBR007 fund at up to 50% maturity value. Early withdrawal is an option and is usually available after one year investing.
Ministry of Finance data show that millennials, ages 19- 39 years, dominate the purchase of government sovereign bonds (Surat Utang Negara, SUN), accounting for 52.41% of the total number of buyers compared to other age groups. “Through the e-SBN feature in digibank by DBS, we would like to support the government in maintaining inflation and economic stability by offering convenience in government bond transactions,” said Executive Director, Head of Digital Banking PT Bank DBS Indonesia Leonardo Koesmanto. “In line with our mission ‘Live more, Bank less’, we would like to encourage our customers to enjoy a hassle-free life, especially in banking. Through digibank by DBS, we provide convenience in investing. digibank by DBS customers who are mostly millennials can now start investing in an easy and simple way to help them reach their goals.
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