“First, the yield of FR bonds is relatively high and higher than the time deposit or saving at banks. Currently, the average FR bond yield is around 5-7 percent per year,” Lie noted in a statement received in Jakarta on Monday.
Referring to the Indonesian Banking Statistics Data for December 2022, the average deposit interest rate for ≥12 months is 4.68 percent per year, while during the same period, the inflation rate had touched 5.51 percent.
On the other hand, the tax imposed on FR bonds is 10 percent that is different from the time deposit that is 20 percent, Lie stated.
Secondly, she noted that from the safety point of view, FR bonds are very safe, as the Indonesian Government guarantees 100-percent payment of principal and coupons.
Different from the time deposit, which has a maximum guarantee of Rp2 billion per bank per customer by the Indonesia Deposit Insurance Corporation (LPS), the investment amount of FR bonds is guaranteed by the state without a maximum limit.
She said that FR government bonds are usually called risk-free assets, as it is safe to say that there is almost no risk of default.
“Investors do not need to worry about the long maturity of FR bonds because they are traded on the secondary market and very liquid. This means that investors can sell their investment at any time before it reaches the maturity date,” Lie explained.
She stated that Bibit.id, Indonesia’s leading digital investment app, is back with its most recent innovation to help investors diversify their investment portfolio.
Through Bibit Plus, everyone can now easily purchase the Government Bond Fixed Rate (FR) series, 100-percent guaranteed by the Indonesian government.
In terms of clarity, Lie emphasized that all products invested through Bibit, starting from mutual funds to stocks and FR Bonds, are registered at the Indonesian Central Securities Depository (KSEI), so these investments are registered in the name of the user or investor as the owner of the asset.
Moreover, the price offered by Bibit is highly competitive. The purchase price is lower, so investors may generate higher yield. The selling price is also higher.
Thus, the buy-sell spread is lower. In addition, there are no hidden costs for investing in FR bonds through Bibit.
According to Vivi Handoyo Lie, FR bonds, as a very safe investment instrument, are suitable for investors keen on protecting their assets from inflation and earning a fixed passive income.
The products that can be purchased at any time through Bibit are also quite diverse. For instance, FR bonds series FR0070, with a fixed coupon of 8.375 percent per year; FR0096, with a fixed coupon of seven percent per annum; and FR0097, with a fixed coupon of 7.125 percent per year.
“The beauty of FR bonds is that investors know exactly the yield they will receive as long as they hold it until maturity. This yield was locked when they bought FR bonds, and it will not change even if economic conditions fluctuate,” she elaborated.
Through Bibit Plus, users can now invest comfortably in various asset classes, such as mutual funds, Retail Government Securities (SBN), stocks, and FR bonds in one app. Users can also use the Customer Fund Account (RDN) as a payment method.
This new experience in investing through Bibit will gradually be applicable for all users, and currently, users, who are interested, could join the Bibit Plus waiting list.
"We are committed to bring innovations and enhance the experience in investing for all Indonesians. This includes the aspect of convenience and variety of asset classes,” she remarked.
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Reporter: Azis Kurmala
Editor: Rahmad Nasution
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