KONTAN.CO.ID -  JAKARTA. Bibit.id, is back with its most recent innovation to help investors diversify their investment portfolio. Through Bibit Plus, now everyone can easily purchase the Government Bond Fixed Rate (FR) series, 100% guaranteed by the Indonesian government.

Head of Investment Research Bibit.id, Vivi Handoyo Lie, said that FR Bonds have several advantages that make it attractive for the investors. 

First, the yield of FR Bonds is relatively high and higher than time deposit or saving at banks. Currently, the average FR Bond yield is around 5-7% per year. 

Referring to the Indonesian Banking Statistics Data for December 2022, the average deposit interest rate for ≥12 months is 4.68% per year, while during the same period inflation rate has touched 5.51%. On the other hand, the tax imposed on FR Bonds is 10%, different from time deposit which is 20%.

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Second, from safety point of view, FR Bonds are very safe as the Indonesian government guarantees 100% payment of principal and coupons. 

Different from 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. FR government bonds are usually called risk-free assets as it is safe to say that there is almost no risk of default.

“Investors don't 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,” said Vivi in press release,  Friday (31/3).

In terms of clarity, Vivi emphasized that all products invested through Bibit, starting from mutual funds, stocks, and FR Bonds, are registered at the Indonesian Central Securities Depository (KSEI), hence these investments are registered in the name of the user/investor as the owner of the asset. In terms of price, the price offered by Bibit is also highly competitive. 

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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 FR through Bibit.

According to Vivi, as a very safe investment instrument, FR Bonds are suitable for investors who want to protect their assets from inflation and earn a fixed passive income. The products that can be purchased at anytime through Bibit are also quite diverse. 

For example, Bonds FR series FR0070 which has a fixed coupon of 8.375% per year, FR0096 with a fixed coupon of 7% per year, and FR0097 with a fixed coupon of 7.125% per year.

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“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.”

Editor: Noverius Laoli