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ORI018 Investment, 5.7% Per Year, Very Profitable!

Jakarta, 01/10/2020 Ministry of Finance - Goverment Bond Retail 018 series (ORI018) was launched today, Thursday (01/10) by the Director General of Financing and Risk Management (Dirjen PPR) Luky Alfirman virtually.

This investment instrument can be owned starting from Rp1 million to Rp3 billion with a fixed coupon (fixed rate) of 5.7% per year and 3 years tenor. The offering period is open from 1 October to 21 October 2020 at 10.00 WIB.

This investment is considered profitable because the interest is above the deposit rate, which averages 5.25% per year. Moreover, currently the Indonesia Deposit Insurance Corporation (LPS) only guarantees deposit interest of 5%.

"ORI018 (interest) is 5.7%. Very attractive compared to time deposits. LPS has just lowered the guarantee interest rate from 5.25% to just 5%," said Deni Ridwan ad interim (Plt.) Director of SUN DJPPR.

In addition, this investment is safe because it is guaranteed by the government, both principal and interest, so there is minimal risk compared to an obscure investment that offers large returns but turns out to be a fraudulent investment.

"Many people are subject to fraudulent investments. The principle of investing is profit. Profit is an increase in purchasing power all the time. So what should be prioritized investing is not profit first but basically safe, safe (greater than deposits and inflation), liquid. Investment is not only a matter of entering (investing) but also being able to get out (liquidity / liquidity risk). These three things are very fulfilled by SBN," said Budi Hikmat, Head of Macro Economics and Investment Strategy Director of Bahana TCW Investment Management as well as an investor.

Even in the midst of a pandemic and recession like this time, many banks are also investing in Government Securities (SBN).

"It is true that we are entering into a recession. Even the banks themselves are investing in SBN. By investing in SBN, it is actually profitable because according to my calculation, the figure is much better at investing in SBN. Bank Indonesia has the possibility of lowering interest again to stimulate the economy and distribute credit. If someone says that the coupon is low, the interest rates of central banks around the world are also low," Budi concluded. (nr / ds)