The meaning of ORI, SBR, and ST

ORI stands for Bonds of the Republic of Indonesia, Ori is an SBN (Government Securities) offered to Indonesian citizens who are distributed through distribution partners in the primary market, while the characteristic of ORI is to use a fixed coupon, with a minimum purchase 1 million rupiah and the maximum is 3 billion, there is potential for capital gain and capital loss, and is scripless and can be traded between Domestic Investors

SBR stands for Retail Savings Bond, SBR is a bond issued by the government of the Republic of Indonesia which is used to finance the state budget which provides rewards in the form of interest or coupons. SBR is a type of Government Securities (SUN) that is specifically offered to individual investors so it is also known as Retail Saving Bonds. SBR cannot be traded on the secondary market, so it has properties such as non-transferable savings, SBR is purchased during the offering period and stored until maturity.

ST stands for Savings Sukuk, ST is proof of ownership of state assets that are leased to the government and not in the form of debt securities, so the ST mechanism is not like debt securities where buyers of debt securities get returns in the form of interest, ST investors buy state assets, then the investor rents out the state assets that he bought to the state until maturity, when the maturity date of ST arrives, the government returns our money and we return the state assets to the government.

The difference between ORI, SBR and ST
  • Tenor - ORI has a term (tenor) of 3 years but before maturity, ORI can be sold in the secondary market. Meanwhile, SBR and ST have a term of only 2 years but cannot be sold before the end of maturity on the secondary market.
  • Coupon (Profit) - ORI has a large profit that stays until maturity, regardless of interest rate. Meanwhile, the amount of SBR and ST coupons is not fixed or floating with floor (floating with a minimum limit) and is affected by interest rates.
  • Potential Return (Capital Gain) - ORI prices can fluctuate depending on the amount of supply and demand in the market. Meanwhile, SBR and ST do not have capital gain potential because the price tends to be fixed.
  • Trading on the secondary market - ORI can be resold before maturity and can be traded on the secondary market. Meanwhile, SBR and ST must wait until the maturity period so that they cannot be traded before the tenor expires.
  • Halal Statement - ORI and SBR are state debt securities so that they are managed conventionally so that there is no Halal statement by MUI. Meanwhile, ST is guaranteed by sharia as a Halal product by the DSN-MUI.