Definition

Capital markets sell securities (securities) including debt, commercial paper, corporate and state bonds.

Treasury Products

  1. Sovereign Debt Instruments, are securities in the debt instruments form guaranteed by interest payments and principal by the Republic of Indonesia state in accordance with their validity period. Government bonds are used by the government, among others, to finance the state budget deficit and cover short-term cash shortfalls within one budget year.
  2. Corporate Bonds, examples Bonds issued by companies that can provide higher returns than Government Bonds
  3. Retail State Bonds (ORI), are state bonds sold to individuals / individuals who are sold to individual / individual Indonesian Citizens through a resellers agent with a specified minimum nominal value

Advantages

  • Safe and secure as coupon payments and principal are guaranteed by law.
  • Gives an attractive advantage since the coupon is higher than the bank interest rate and the potential for capital gains.
  • Easy and transparent buying and selling procedures.
  • Can be traded in Secondary Market according to market price.
  • ¬†Providing an opportunity for the community to participate directly in the National Development.
  • Coupon and principal payments are made on time and online into an investor's savings account.

ORI Investment Risk

In principle, investment in ORI is a free investment against the default risk that is the Government's failure to pay the coupon and principal to the Investor. However, in transactions in the secondary market, there may be market risk in the capital loss form due to the lower selling price compared to the purchase price, which can be avoided by not selling state bonds held until maturity