Secondary Bonds

Secondary Bonds Product Information

Product Type : Indonesian Government Bonds

Issuer          :

• Direktorat Pengelolaan Surat Utang Negara

• Direktorat Jenderal Perbendaharaan

• Departemen Keuangan Republik Indonesia

Gedung Frans Seda Lantai 4

Jl. DR. Wahidin Raya No 1- Jakarta 10710

Main Features :

Characteristic and Brief Information : 

Indonesian Government Bond series FR and Indon are debt instruments issued by the Government within a certain period of time with a fixed coupon. The government in this case as the issuer guarantees the return of the principal value at maturity plus a coupon that will be paid periodically.

Currency : IDR and USD

Coupon Frequency : Every 6 months (semi annual)

Coupon rate & maturity : Varies for each series, for details please contact Bank CTBC branch or Bank CTBC call center 08071221111

Product Risk Rating : Moderate/Moderate Aggressive/Aggressive

Custodian Bank                           : PT Bank Danamon Indonesia Tbk

Minimum buy/sell amount    :

Benefit :

• Receive coupon in fixed amount until maturity date

• Tradable. Can be bought and sold.

• Potential capital gain.

• Coupon payment and maturity are guaranteed by Government.

Risk:

• Default risk is failure to receive coupon payment and/or investment principal upon coupon schedule and/or maturity date.

• Market Risk is capital loss risk for investors that can be caused by interest rate changes, fundamental economic changes and unstable political conditions. Capital loss occurs when investors sell their bond before maturity date at a selling price that is lower than the buying price.

• Liquidity Risk is a risk that occurs when investors are not able to sell their bond in a timely manner and at a fair price. Liquidity risk occurs when investors are in need of emergency fund but are unable to sell at a fair price.

Requirements and Procedures :

• Pembelian Obligasi di Pasar Sekunder :

  • Individual customers with the status of Indonesian Citizens (WNI) or Foreign Citizens (WNA), except United States Citizens.

  • Companies or corporations domiciled in Republic of Indonesia, except those incorporated in the United States. For corporate customers, people who can make purchase/sale Bonds are the authorized party in accordance with the applicable articles of association.

  • Already have a CTBC Bank savings or checking account, and a bank account that can used by customers in carrying out the transaction is an account in the name of own customer and not account joint account.

  • Have Single Investor Identification (SID) and Sub Securities Account (SRE) from Custodian Bank that cooperates in the management of securities.

  • Fill and sign the Customer Risk Profile Form, the form of purchase/sale of bonds, the form of general terms and conditions of bond transactions and the form of information on secondary market bond products.

  • Attach a valid KTP (Indonesian citizen) / Passport (Foreigner)/ Company documents.

• Fee :

  • No fee for Buy / Sell

  • Subject to tax based on applicable regulations and law of Republic of Indonesia

• Investment Simulation :

  In investing in Bonds, price of Bond is exposed to market fluctuation. Investor may suffer loss of invested capital. Bond purchased at premium price will converge to nominal value at maturity, which is lower than the initial principal invested.

Best Scenario

• Market price of the Bond in the secondary market is trading above the investor purchase price. Investor will get capital gain if the holding is sold. Investor will be eligible for regular coupon payment on every six month according to specified schedule until the selling of holding.

Base Scenario

• Investor hold the Bond until maturity. Investor will not receive any capital gain or loss and will be eligible for regular coupon payment on every six month according to specified schedule until maturity.

Worst Scenario

• Investor hold the Bond and the issuer of the bond defaulted. Investor can be at risk that the face value of the investment will be lost partially or fully and will not receive coupon payment.

• Investor will incur capital loss when selling Bond below the purchasing price.

Informasi Tambahan :

• Bond is a capital market product and not product of Bank CTBC Indonesia.

• Role of Bank CTBC Indonesia is as certified securities brokerage that offers bond product to customers. Bank CTBC Indonesia is not responsible for the performance of the bond product.

• Bond investment is not a bank deposit product and therefore, not covered and insured by Indonesian Deposit Insurance Corporation (LPS).

• Before investing, customer shall understand the characteristics, features, and risks attached to bond product stated under product information.