Is Retail SBN or Retail Government Bonds (SBN Ritel) suitable for beginner investors?

Yes. Retail SBN is a low-risk investment with stable returns, making them ideal for beginners. Additionally, they are:

– Affordable (min. purchase of IDR 1,000,000)
– Coupon/returns and principal repayment guaranteed by law
– Easy to purchase via the Jenius app

What are the benefits of buying Retail SBN?

In addition to providing regular passive income through coupons/returns, these Retail SBNs can be sold on the secondary market for potential capital gains.

What are coupons/returns?

The coupon/return is the annual yield you receive while holding Retail SBN. The coupon/return is also referred to as the interest rate and can be either fixed or floating with a floor.

– Fixed means the rate remains unchanged. The coupon/return value you receive stays the same until maturity.
– Floating with a floor means the rate fluctuates but has a minimum value. The coupon/return you receive may change (floating) but will not fall below the minimum (floor) set by the issuer of the Retail SBN.

The coupon/return for Retail SBN is calculated on an annual basis (per annum, or p.a.). This means the coupon/return is evenly distributed over the year.

For example, if a Retail SBN has a fixed monthly coupon/return of 5% p.a., the amount you receive each month in your Active Balance will be calculated as follows:

Investment value in the bond × 5% ÷ 12 months in a year.

Who issues Retail SBN?

Retail SBNs are issued by the Government of the Republic of Indonesia.

Are Retail SBNs insured by the Lembaga Penjamin Simpanan (LPS, or Deposit Insurance Institution), like deposits?

No. These bonds are not bank products and are not insured by LPS.

Are Retail SBNs state-guaranteed?

Yes. Principal repayment at maturity and regular coupon/return payments are guaranteed under Law No. 24 of 2002, Article 8, Paragraph 2 on State Debt Securities.

What is the difference between the Primary Market and Secondary Market?

The main difference lies in the seller and the transaction timing:
– Primary Market: This is where you purchase Retail SBN directly from the Government during the initial offering period at a fixed price.
– Secondary Market: This is where investors can buy or sell Retail SBN and other bonds after the initial offering period until maturity. Prices here may fluctuate according to market conditions.

Why are there Ongoing, Upcoming, and Completed Retail SBNs?

This is because each Retail SBN has its own specific offering period.

When a new Retail SBN is announced, you can see the announcement on the Home screen of the Jenius app. You can also find the product by opening the Wealth page, going to Investment, navigating to the Bonds & SBN area, tapping View Products, and selecting Upcoming from the list of available products.

There, you will find the exact date the bond will enter its offering period.

When a Retail SBN enters its offering period, the product will move to the Ongoing page. For bonds whose offering period has ended, you will find them on the Completed page.

What are the risks of investing in Retail SBN?

– Liquidity Risk
Investment funds will be locked for a specific period. Early redemption or sale of Retail Government Bonds can only be done according to the information stated in the Information Memorandum.

– Maturity Risk
The longer the maturity period, the higher the uncertainty of principal repayment, thereby increasing the risk for investors.

– Market Risk
The price of Retail Government Bonds will rise when interest rates are low, and vice versa. Investors should consider interest rates, inflation, and Yield to Maturity (YTM) before investing.

What types of Retail SBNs are available on Jenius?

Bank SMBC Indonesia, through the Jenius app, is authorized to offer the following Retail SBN in the Primary Market:

– SBR (Savings Bond Ritel): Conventional government bonds with a floating return (with a floor rate), eligible for early redemption.
– ORI (Obligasi Negara Ritel): Conventional government bonds with a fixed return, tradable on the Secondary Market.
– ST (Sukuk Tabungan): Sharia-compliant government bonds with a floating return (with a floor rate), eligible for early redemption.
– SR (Sukuk Ritel): Sharia-compliant government bonds with a fixed return, tradable on the Secondary Market.

What is the difference between conventional and sharia Retail SBN?

Conventional Retail SBN provide returns through fixed or floating coupon rates. Meanwhile, Sharia Retail SBN operate under sharia principles in accordance with the fatwas of the National Sharia Board of the Indonesian Ulema Council (DSN-MUI), also offering fixed or floating returns.

Although they operate under different schemes, both types are guaranteed by the Indonesian government.

How do I register for a Retail SBN Account on the Jenius app?

– Go to the Wealth page from the bottom navigation, select Investment, scroll to the Bonds & SBN section, and then choose Register Bonds & SBN Account.
– Complete the Risk Profile Quiz if you haven’t already, fill out the registration form, and submit the required personal data. Your investment account will be registered within a max. of 2 trading days.

What if I already have an SID or have traded Retail SBN elsewhere?

If you have previously traded Retail SBN on another platform, you still need to register on Jenius or with Bank SMBC Indonesia so your Single Investor Identification (SID) is recorded in the bank’s internal system.

However, if you have previously purchased retail SBN through a Bank SMBC Indonesia branch and wish to buy via Jenius, you do not need to register again.

What documents are required to apply for an SID?

No documents are needed.

However, you must ensure your personal data in the Jenius app matches the population registry (Dukcapil) and that your Risk Profile is up to date.

How long does it take to create an SID?

If all your data matches Dukcapil and the registration process goes smoothly, your SID will be created within a maximum of 2 market days.

When can I start trading Retail SBN?

You can start trading retail SBN once your SID is active and available in Bank SMBC Indonesia’s internal system.

When can a Retail SBN product be purchased?

A retail SBN can be purchased once it enters its offering period according to the dates specified in each product’s Information Memorandum.

How do I buy Retail SBN through Jenius?

– Open Wealth page, select Investment, then select View Products in the Bonds & SBN area
– On the Ongoing page, choose an available product in its offering period, and select Buy
– Make sure you have enough Active Balance to buy, input your purchase amount, and tap Next
– Read the Terms and Conditions, give consent, then select Confirm and Order SBN to create a Retail SBN purchase order
– Select Pay Now to complete payment with your Jenius Active Balance
– Enter your password to confirm
– Your SBN Ritel purchase is being processed! You will receive a notification once successful or failed

Is there a Retail SBN trading schedule?

Retail SBN can be purchased when products enter their offering period. The offering schedule is available in the Information Memorandum visible in each product’s details.

During the offering period, while national and individual quotas are available, transactions can be made 24/7 through the Jenius app.

Can Retail SBN be sold before maturity?

Some Retail SBN can be sold before maturity, while others cannot. Examples of Retail SBNs that can be resold are ORI and SR, provided you’ve held the product through the minimum holding period.

You can verify this in the product details. Scroll to the bottom until you find the “Can be resold” label. Retail SBN that cannot be resold will display “Can be redeemed early.”

How do I sell ORI and SR through the Jenius app?

– Go to the Wealth page, select Investment, scroll to the Bonds & SBN section and tap on the ORI or SR product you want to sell to open the product details page
– Ensure the product has entered the selling period so the Sell button appears on the product details page
– Once available, tap the Sell button
– Enter the sale amount, then tap Next
– Review the Transaction Details, then tap Next if correct
– Read the Terms & Conditions, provide consent, then select Confirm & Sell SBN
– Enter your password to confirm
– Your retail SBN sale is being processed! You’ll receive a notification when the sale succeeds or fails

What does “can be redeemed early” mean?

“Can be redeemed early” is an early redemption feature that allows you to withdraw funds from your retail SBN holdings before maturity.

Retail SBN that qualify for early redemption are SBR and ST, provided you’ve held the product through the minimum holding period.

What are the requirements for early redemption of Retail SBN?

Retail SBN can be redeemed for up to 50% of total holdings, with a minimum redemption of IDR 1,000,000 in multiples of IDR 1,000,000. Additionally, your retail SBN holdings must be at least IDR 2,000,000 before redemption.

How do I make an early redemption of SBR or ST that I own?

– Go to the Wealth page, select Investments, scroll to the Bonds & SBN section and tap on the SBR or ST product you want to redeem early
– On the product details page, scroll until you find the Redeem button for each transaction you’ve made, and tap on your desired holding
– Ensure your SBR or ST holdings meet redemption requirements, enter the early redemption amount, then tap Next
– Review the Transaction Details, then tap Next if correct
– Read the Terms & Conditions, provide consent, then select Confirm & Early Redeem
– Enter your password to confirm
– Your early redemption is being processed! You’ll receive a notification when the redemption succeeds or fails

When will early redemption funds be credited to my Active Balance?

Funds will be credited to your Active Balance according to the date specified in each product’s Information Memorandum. Please review this before initiating early redemption.

Can I cancel a transaction?

No. Confirmed transactions cannot be canceled.

What is the tenor of Retail SBN and why does it exist?

The tenor is the period during which investors keep funds or principal in Retail SBN, indicating ownership until maturity – the date when the principal must be returned to investors.

Retail SBN must have a term because they are debt instruments, meaning investor funds or principal must be repaid at maturity. Maturity indicates the loan period has ended.

The term to maturity varies significantly depending on the retail SBN series as stated in the memorandum.

Where can I view product quotas?

You can find product quotas in the retail SBN product list on Jenius. Go to Wealth, select Investment, and tap View Products in the Bonds & SBN section to find them.

Where can I view the retail SBN I’ve purchased on Jenius or with Bank SMBC Indonesia?

You can open the Jenius app, select Wealth, choose Investment, and scroll to the Bonds & SBN section. Your purchased products will be displayed there. You can select any product to view its detailed information.

When will I receive Retail SBN coupons/returns?

Each Retail SBN has different coupon/return payment dates and frequencies throughout the year. You can check the specific payment details for each product in the available Information Memorandum.

If a coupon/return payment date falls on a holiday, the payment will be made on the next business day without any additional interest or adjustment to the coupon/return value.

What happens when a product matures?

At maturity, the principal amount will be automatically credited to your Active Balance.