PORTALJABAR, BANDUNG CITY - Investment in the capital market, generally what comes to mind is stock investment. In fact, there are many other investment instruments, including various types of debt securities.

Debt securities or also called bonds are securities documents (can be in physical or digital form) in the form of a promise containing a statement of acknowledgment of debt from the debt securities issuer, along with the obligation to pay interest or interest coupons given to the party providing the loan (bond or debenture holder). ).

Head of the Indonesian Stock Exchange (BEI) West Java Representative Office, Achmad Dirgantara, said that these debt securities are traded on the capital market, either through the Indonesian Stock Exchange (BEI) or banking, so the owners of the debt securities or bonds are called investors.

"Investors can buy debt securities on the secondary market as long as the bonds are traded until maturity. The maturity of debt securities varies, some are only three years, up to thirty years or even more," said Achmad, Monday (5/8/ 2024).

According to Achmad, debt securities can be issued by the government, called Government Debt Securities (SUN), with long terms. Can be issued domestically in rupiah currency, and can be issued on the global capital market in foreign currency.

"The longest SUN of the Republic of Indonesia (RI) is the RI0153 series in US dollars which has a tenor or maturity of 30 years after the date of issuance, namely on January 11 2053. This SUN was issued by the government for US$ 750 million. The domestic SUN series has the code "FR. For example, FR044 will mature on September 15 2024, then there is FR0037 which will mature on September 15 2026," he explained.

There are SUNs issued using a sharia scheme (Sukuk), which are called State Sharia Securities (SBSN). In July 2024, the government will auction seven new SBSN series, including the SPNS 02022025 series which matures on May 29 2025 and the PBS 032 series which matures on July 5 2026.

Because SUN with the FR and RI series and Sukuk with the SPNS and PBS series generally can only be traded with a large minimum denomination, most buyers or sellers in the secondary market are institutional investors. Such as Pension Funds, Investment Managers, Insurance Companies, Endowment Funds, Foundations and other institutions.

Meanwhile, for individual investors or retail investors, the government has issued special debt securities that can be purchased with a relatively affordable minimum purchase under the names Indonesian Retail Bonds (ORI) and Retail Sukuk (Sukri). Several ORI and Sukri series include ORI024 and ORI025 as well as SR 20T3 and SR20T5.

Investors can buy ORI and Sukri with a minimum purchase and minimum sale of IDR 1 million. The government also issues Retail Saving Bonds (SBR) and Savings Sukuk (ST), which are debt securities and sukuk that cannot be traded until maturity, but have floating interest rates so they have the potential for higher coupons and return value.

Apart from getting potential profits in the form of coupons paid every month, investors can also get capital gains from increases in the price of debt securities on the secondary market. The price of debt securities will be calculated at 100% when they mature, which means 100% of the capital is returned.

So if an investor buys at a price of 90% and holds it until maturity, he will get a profit of 10% of the principal investment capital.

"The purpose of issuing debt securities and sukuk by the government is for various kinds of budget needs. Such as covering the budget deficit, namely state spending needs, controlling inflation, debt payments and infrastructure development," said Achmad.

Apart from being issued by the state, debt securities or bonds are also issued by companies, so they are called Corporate Bonds. Private companies and state-owned companies also issue bonds for various funding needs. Among other things, for business expansion, paying debts, or other financial needs. (rep no)