Not many are aware that many infrastructure projects in Indonesia were sponsored by public funds through the sharia-based state bonds (state sukuk).

These projects lie along the equator. For example, the Simpang Mandai underpass in Makassar, South Sulawesi, which was funded by the 2015-2017 state sukuk and the Amplas Medan ramp on/off that supported by the 2016 state sukuk. The Balang Island bridge in Samarinda, East Kalimantan; Gerung Mataram road, West Nusa Tenggara; Cirebon-Kroya double-track rail; and the Petuk Kupang bridge, East Nusa Tenggara, were also constructed with state sukuk funds.

"Several projects [funded by sukuk, for instance] roads and bridges in 30 provinces. Train projects in Java, Sumatra, and Sulawesi. Revitalization of hajj dormitories in 24 [cities] as well as 54 universities and 32 madrassas," said Finance Minister Sri Mulyani.

Government sukuk or sharia-based state bonds are certifications of ownership of state assets. Buying sukuk means buying state assets, which are then leased back to the government until certain maturity or expiration date.

The term for a sukuk contract is “ijarah asset to be leased”. This is an ijarah (lease) contract with the ijarah objects whose specifications have been determined. Some ijarah objects already existed when the contract occurred, but the ijarah object submission will be completed in the future in accordance with the agreement.

Buying state sukuk allows individuals to easily participate in government projects while investing. One of the state sukuks is sukuk ritel or sukri which can be purchased by individual investors with a minimum deal of one million rupiah.

The state sukuk that will be offered by the government on February 24-March 12, 2020 is the SR012 Series Sukuk Ritel. This series is a continuation of the previous series, namely SR011 which was published on 1-21 March 2019.

What makes sukuk ritel or sukri interesting? Let us tell you a number of benefits of sukri. First, sukri is safe and legit. Your investment will 100% guaranteed by the government to make it risk-free. Sukri was also confirmed to have complied with Sharia law by the National Sharia Council - Indonesian Ulema Council (DSN-MUI).

Second and third, sukri is profitable and affordable. Purchasing sukri brings in revenues or returns in the form of rent payment (ujrah). SR012, the current series, was offered with a coupon yield of 6.3%. The returns calculation is expressed in the form of a percentage of capital in a year, but the payment is made monthly.

Fourth, the instrument can be traded on the secondary market. Sukri SR012 has three-year tenure and will reach its maturity on March 10, 2023. Three-year is a period that adaptable to your financial plan. You can hold it to maturity or sell it—sukri is tradable—before maturity to get capital gains. Moreover, sukri has a lower tax rate at 15%, to compare with the deposit tax rate at 20%.

A growing trend for low-interest-rate enables sukri to be very desirable. As the government limits the issuance of retail government securities (SBN) to six times this year—10 times in 2019—making SR012 more anticipated.

Fifth is easy to buy. Individuals can buy sukri at selling agents or distribution partners, i.e. 22 banks and securities companies such as PT Mandiri Sekuritas as a securities company with a one-stop financial services.

To buy SR012, as one of the Mandiri Sekuritas investors, you just have to complete the data on the website https://sbn.most.co.id, fill the blank column, and insert your transaction PIN.

For those who haven’t account in Mandiri Sekuritas, you just have to open an account, transfer funds, fill out forms and proof of deposit, then wait for allotment from the government and settlement from the selling agent.

 

How to count the return in SR-012?

You can check the calculation of the profit of the previous sukri series on the Ministry of Finance's DJPPR website for comparison. However, the calculation does not include tax and other costs.

For example, investor A buys sukri on the primary market for 70 million rupiah, with a return rate of 6.3% per year (nett 5,355% after tax). If the sukri is retained until its maturity, investor A will obtain benefits as follows:

- Return = (IDR 70,000,000 x 6.3% x 3 years) = IDR 13,230,000 (transferred monthly until maturity). The accumulative value will be

- Nominal value on the due date. Investor A received a sukri nominal value of 70 million rupiah.

 

Another illustration, investor B buys sukri on the primary market for 70 million rupiah, with a return rate of 6.3% per year (5.355% after tax).

If he sells sukri at the secondary market before its maturity at a rate of 102%, investor B will derive benefits as follows:

- Return = (IDR 70,000,000 x 6.3% x 1/12) = Rp 367,500 (received monthly until the sukri is being sold).

- Capital gain = IDR 70,000,000 x (102-100)% = IDR 1,400,000. The total profit he will receive is IDR 71,400,000 (nominal value of sukri + capital gain).

This is promising, isn’t it? If you are into a halal and shariah investment, and at the same time supporting the government, you have the opportunity to do so.

With only one million rupiah, you already participate in developing Indonesia, with a sharia way, halal, and inshaAllah will be blessed.

So, what are you waiting for?