ORI014 Offered with the Lowest Coupon Ever

From September 29 to October 19, 2017, the Indonesian government offered the Retail State Bonds (ORI) series ORI014 with a coupon rate of 5.85 percent. This figure is 80 basis points (bps) lower than the ORI013 coupon and also below the yield of the government benchmark bond (3-year tenor), which stands at 6.1 percent. Furthermore, this coupon rate is the lowest since the launch of ORI001 in August 2006, which offered a coupon rate of 12.05 percent.

Despite the lower coupon rate, it remains attractive to investors because it is higher than the interest rate on deposits at state-owned banks. This retail bond is government-guaranteed, making it a safe investment, and offers potential profit from price differences upon resale.

The allocation of the state bonds was carried out on October 23, and settlement on October 25, 2017. This bond, intended for retail investors, can be ordered with a minimum order of Rp 5 million and a maximum of Rp 3 billion. Coupon payments will be made on the 15th of each month. Currently, there are three active series of government retail bonds: ORI011, ORI012, and ORI013, with a total nominal value of Rp 68.35 trillion.