Surge in Retail Sukuk SR020 Overshoots Expectations, Reaching Rp 21 Trillion

KONTAN.CO.ID - JAKARTA. The retail sukuk series SR020 offering has drawn to a close, marking a remarkable chapter in Indonesia's financial landscape. Investor appetite for SR020 soared, surpassing all expectations as sales of the sukuk reached an impressive Rp 21 trillion.

Throughout the offering period, the government consistently expanded the subscription quota in response to burgeoning demand. Initially set at Rp 15 trillion, the target was subsequently raised to Rp 17.5 trillion, and ultimately to Rp 20 trillion.

Dwi Irianti Hadiningdyah, Director of Sharia Financing at the Directorate General of Financing and Risk Management of the Ministry of Finance, reflected on the success of SR020 amid unique circumstances. Despite the offering coinciding with the holy month of Ramadan and investors typically conserving liquidity ahead of Eid al-Fitr holidays, interest in SR020 remained notably high.

This fervor can be attributed to SR020's status as a retail government sukuk with relatively low risk and attractive characteristics tailored for retail investors. Its safety, Sharia compliance, accessibility, and profitability make it a compelling investment avenue.

"Moreover," Dwi noted in an interview with Kontan.co.id on Sunday (3/31), "SR020 is a tradable instrument in the secondary market, thereby minimizing liquidity risks."

Although achieving commendable figures, Dwi acknowledged that SR020's performance falls short of its predecessor, SR019, which boasted sales of Rp 25.33 trillion in September 2023.

"Nevertheless," Dwi emphasized, "exceeding targets amid holiday preparations and extended breaks during the SR020 offering period is a remarkable feat."

Reza Fahmi, Senior Vice President and Head of Retail, Product Research & Distribution Division at Henan Putihrai Asset Management (HPAM), shed light on the sentiment driving SR020's success.

Despite Ramadan's observance, public enthusiasm for investment remained robust, propelled by SR020's minimal risk and advantageous characteristics for retail investors. Furthermore, SR020's principal and returns are legally guaranteed and Sharia-compliant.

"Additionally," Reza remarked to Kontan.co.id on Sunday (3/31), "SR020 offers regular coupon payments, enabling investors to meet their financial needs systematically."

It's worth noting that SR020-T3 is due on March 10, 2027, while SR020-T5 matures on March 10, 2029. The minimum subscription for both series is set at Rp 1 million, with a maximum of Rp 5 billion for SR020-T3 and Rp 10 billion for SR020-T5.

Settlement for SR020 is scheduled for April 3, 2024, with the first coupon payment slated for May 10, 2024, and subsequent payments on the 10th of each month.

Furthermore, SR020 is bearer-like and can be traded in the secondary market with a minimum holding period of three coupon payments. Consequently, trading for SR020 is set to commence on July 11, 2024, or upon the conclusion of the minimum holding period.