REPUBLIKA.CO.ID, SEMARANG -- The Indonesian government has launched retail saving bonds (SBR) series 001 to help meet funding needs to develop infrastructures throughout the country.

The retail saving bonds offer many advantages, compared to retail Indonesian bonds (ORI) and retail sharia compliant bonds (sukri), which the government issued earlier, manager of PT Danareksa Sekuritas' branch in Semarang, Melcy RS Makarawung, said here on Saturday.

Although SBR carries the same yields as ORI and Sukri, SBR is not affected by a decline in interest rates set by the Deposit Insurance Agency (LPS), he said.

"ORI, Sukir and SBR carry the same yield of 8.75 percent, consisting of the Bank Indonesia (BI) benchmark interest rate of 7.5 percent and the LPS guaranteed interest rate of 1.25 percent," he said.

If the LPS guaranteed interest rate increased, the yield on SBR would increase accordingly. But this would not be the case if the LPS guaranteed interest rate declined, he said.

The yields on ORI and Sukri followed a fluctuation in the LPS guaranteed interest rate, he said.

The maturity of SBR was only two years, while ORI and Sukri had maturity rates of three years, he added.

Unlike ORI and Sukri, SBR could only be traded on the primary market, he said.

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