ORI021 Coupon Rate Set at 4.9%: Still Attractive for Investment?

The Directorate General of Financing and Risk Management (DJPPR) of the Indonesian Ministry of Finance set the coupon or yield for the ORI021 series of Retail State Bonds (Obligasi Negara Ritel) at 4.9% per annum on Thursday, January 20, 2022.

With a yield of 4.9%, ORI021 remains attractive as an investment portfolio. Besides offering a higher yield compared to the interest rates on deposits at state-owned banks (BUMN) and several national private banks, the bond tax is also lower. For information, the current bond tax is only 10%, while the deposit tax is 20%.

The ORI021 yield is also higher than the BI 7-Day Reserve Repo Rate benchmark interest rate of 3.5% per annum. The interest rate difference is 140 basis points (bps).

The ORI021 State Debt Securities will be offered from January 24 to February 17, 2020. The ORI021 coupon is a fixed rate of 4.9% and will mature in January 2025.

Several private banks that have transformed into digital banks are starting to offer investment alternatives within their application features to target younger investors. Several investment websites also offer investment portfolios in the form of stocks, mutual funds, bonds, commodity trading, foreign exchange, and cryptocurrencies.