ORI (Obligasi Ritel Indonesia) are retail government bonds issued by the Indonesian Ministry of Finance, designed specifically for individual Indonesian citizens. Here’s a quick overview of what makes them unique:
Key Features of ORI Bonds:
- Issuer: Government of Indonesia
- Currency: Indonesian Rupiah (IDR)
- Tenor: Typically, 3 to 6 years
- Coupon: Fixed rate, paid monthly
- Tradability: Can be traded on the secondary market (unlike some other retail bonds like SBR)
- Minimum Investment: Usually starts from IDR 1 million
- Eligibility: Only available to Indonesian citizens
Purpose:
ORI bonds are issued to help finance the national budget (APBN) and support development programs in areas like education, health, and infrastructure. By investing in ORI, citizens not only earn returns but also contribute to national development.
Safety:
These bonds are considered very safe because both the principal and interest payments are guaranteed by the government under Law No. 24 of 2002.
Would you like to know how to buy ORI bonds or compare them with other types like Sukuk Ritel (SR) or Savings Bond Ritel (SBR)?
How to Buy ORI Bonds:
- Open a SID (Single Investor Identification):
- This is a mandatory ID for investing in Indonesian securities.
- You can register through participating banks or investment platforms, such as DBS digibank, OCBC One Mobile, or Maybank M2U ID App.
- Register for e-SBN (Electronic Government Bonds): After getting your SID, register for e-SBN to access government bond offerings online.
- Choose a Distribution Partner: ORI bonds are sold through official distribution partners such as:
- Banks: BCA, Mandiri, BRI, BNI, CIMB Niaga, etc.
- Securities Firms: Trimegah, Danareksa, etc.
- Online Platforms: Bareksa, Bibit, Tanamduit, etc.
- Place Your Order:
- During the offering period, log in to your chosen platform.
- Select the ORI series you want to buy.
- Enter the investment amount (minimum IDR 1 million).
- Confirm and complete the transaction.
- Receive Monthly Coupons: You’ll receive fixed monthly interest payments directly to your registered bank account.
- Hold or Trade: You can hold the bond until maturity or sell it on the secondary market if needed.
Risks of Investing in ORI Bonds:
- Interest Rate Risk
If market interest rates rise after you purchase an ORI bond, the bond’s fixed coupon becomes less attractive. This can reduce the bond’s resale value if you decide to sell it before maturity. - Liquidity Risk
Although ORI bonds are tradable, the secondary market may not always be active. This means you might not find a buyer quickly or may have to sell at a discount. - Inflation Risk
Since ORI bonds offer fixed interest payments, high inflation can erode the real value of your returns over time. - Reinvestment Risk
If you receive monthly coupon payments and reinvest them at lower interest rates, your overall returns may decrease. - Market Risk
While the principal is guaranteed if held to maturity, the bond’s price can fluctuate in the market due to changes in economic conditions or investor sentiment. - Currency Risk (for foreign investors)
If you’re not based in Indonesia and invest in ORI bonds, fluctuations in the IDR exchange rate could affect your returns when converting back to your home currency.
Despite these risks, ORI bonds remain a popular choice for conservative investors seeking stable income and government-backed security.
