What are the benefits of investment in Government Securities?

• Inexpensive, purchases start from IDR 1 million and multiplication thereof.
• Secured, retail SBN principal payments and yields/coupons are guaranteed by the State based on law;
• Profitable, yield/coupon given is quite attractive and higher than the interest rate of the state-owned bank deposits;
• Easy, returns/coupons will be monthly credited directly into your account;
• Investors may purchase SBN match their respective risk profiles. There are options of yield/coupon types, namely fixed rate (coupon remains until maturity) and floating rate (floating coupon with the guaranteed minimum coupon/floor);
• Early redemption facility (partial repayment before due) without redemption fees for SBR and ST products;
• Easy access to make orders and apply for early redemption via Livin' by Mandiri application;
• Providing opportunities for peoples to participate in supporting national development financing.

What are the risks of investment in Government Securities?

• Default Risk is the risk if investors are unable to obtain the payment of funds promised by the issuer on the maturity date of the product, both yield/coupon or nominal value. As a capital market instrument, Retail SBN is classified as a risk-free instrument because the payment of yield/coupon and the nominal value of SBN are guaranteed by the Government based on the SBSN (Government Shariah Securities) Law and APBN (State Budget) Law.
• Liquidity Risk, is the difficulty in selling SBN (Government Securities) before the maturity date of it, if investors need cash. SBN of SBR (Retail Government Securities) types and ST contain liquidity risk because they cannot be traded and transferred before the maturity of it. Meanwhile, ORI and SR types can be traded before maturity at the prices applicable in the market.
• Yield/Coupon Risk, is the risk of reducing the yield/coupon gained by investors due to changes in the reference rate of return (applies to SBR and ST)
• Market Risk, is potential losses suffered investors (capital loss) due to selling ORI/SR before the maturity date of it in the conditions where the interest rates are increasing, so it results in a decline in ORI/SR prices in the secondary market. This condition can be avoided by holding ORI/SR until the maturity date of it.

Where can I buy Government Securities?