Indonesia to Offer Retail ST008 Series Savings Sukuk; Demand Predicted to Reach IDR 8 Trillion

The Government of Indonesia is planning to re-open the retail sale of state securities (SBN), through the offering of ST008 series Savings Sukuk from the 1st to the 17th of November 2021.

Why it Matters?

According to Gama Yuki, Portfolio Manager of Sucorinvest Asset Management, ST008 sales will be estimated to reach IDR 5 trillion – IDR 8 trillion, with the projected yearly yield offered to be in the 4.5% - 5% range. This projection is based on the previous ST007 issuance, which had a yield of 1.5% above the benchmark interest rate or the Bank Indonesia’s 7 Day Reverse Repo Rate (BI7DRR). As such, the ST008 yield has the potential to be in the 1% - 1.5% range above the current BI7DRR (which stands at 3.5%), which according to Gama, is sti...