Get to know Savings Sukuk Investment

Get to know Savings Sukuk Investment

What is Savings Sukuk?

Sukuk Savings is a sharia-based government securities (SBN) investment instrument that is safe, affordable, easy and profitable. This investment product is very safe because the state has guaranteed its safety.

The government has also regulated Savings Sukuk investment activities in Law Number 19 of 2008 concerning State Sharia Securities. On November 1 2018, the government began offering this sukuk product.

Savings Sukuk or ST is a SBN product that has a floating rate coupon scheme with a tenor of 2 years. Investors can invest in ST with a minimum amount of IDR 1 million. Meanwhile, the maximum purchase amount for this product is IDR 1 billion.

In addition, investors can cash out coupons early (early redemption) with the condition of investing 2 million. If investors want to do early redemption, then investors can cash out a maximum of 50% of the total purchase of this product.

The issuance of Savings Sukuk has the objective of financing the development of various APBN projects in Indonesia. In addition, this product also provides an opportunity for Indonesian investors to invest in sharia so that they are able to develop the domestic sharia financial market.

Benefits of Savings Sukuk

1. Has a Guarantee from the State

You don't need to worry about the security of investing in this product because the coupon payments or yields and nominal values are guaranteed by the State. This makes this investment instrument has almost no risk of default.

2. Coupons are higher than deposits

When this product was issued, the Sukuk Savings coupons were higher than the average state-owned enterprise bank deposit interest rate. Every month, investors will get coupons or rewards.

3. There is an Early Redemption Feature

An investor can withdraw investment assets before maturity (early redemption). This disbursement of funds does not incur additional costs (redemption costs).

4. Support State Development

With the offering of state securities, investors have the opportunity to participate in supporting the country's development.

5. Investment with Sharia Principles

With this product, the government provides access to Indonesian investors to participate in financial market activities without going against sharia principles. This investment instrument is the right choice for Muslim investors who wish to invest in sharia.

Risk of Savings Sukuk

1. Risk of Default

Default risk or risk of default is a situation when an investor is unable to obtain payment of funds promised by the issuer when the investment product matures with the return or coupon and nominal value.

However, this risk is very small. In fact, investors have almost no risk of default because the state has guaranteed the issuance of coupons

2. Liquidity Risk

Sukuk Savings is a product that cannot be traded or transferred. This causes liquidity risk so that investors have difficulty selling Savings Sukuk before maturity. However, investors can cash out this product before maturity with a maximum of 50% of the total product purchases.

3. Coupon Risk (Return)

Investors must face the risk of reduced returns or coupons received due to changes in the reference rate of return. This product coupon/reward is floating.

If the interest rate decreases, then the yield for this type of SBN decreases to the minimum return rate (floor). Every 3 months, there is an adjustment in compensation up to maturity.

Conclusion

Savings sukuk are sharia-based state securities investment assets that are safe, affordable, easy and profitable. Investors can get yields or coupons which tend to be higher than bank deposits.

In addition, investors can also redeem coupons before maturity. Even though there are some risks that investors need to pay attention to, investors can participate in the country's development without conflicting with sharia principles.

After knowing the meaning of saving sukuk and its risks, you can start investing in Savings Sukuk during the offer period or purchase order period in the tamanduit application.

SBN Syariah series ST010 with a floating with floor coupon type of 6.25% (ST010-T2) & 6.40% (ST010-T4) has been released. Offer period from 12 May—7 June 2023.