Indonesia Records Biggest-Ever Islamic Bonds (Retail Sukri) Sale
As predicted, demand for Indonesia's sharia-compliant government retail bonds (Sukuk Negara Ritel, abbreviated Sukri) remains strong and is growing. In fact, Indonesia's Finance Ministry released a statement on Monday (07/03) that said Southeast Asia's largest economy recorded its biggest ever sale of Sukri bonds. Between 19 February and 4 March 2016 Indonesia offered the three year SR-008 Islamic bond series (carrying a fixed coupon of 8.3 percent per year), raising IDR 31.5 trillion (approx. USD $2.4 billion).
Indonesia's Finance Ministry attributed the record-breaking success of the SR-008 Islamic bond series to a better understanding of Indonesian retail investors about Islamic investment instruments and the solid efforts of the sales agents. Twenty banks and six securities firms had been appointed by the Indonesian government to serve as sales agents for this issuance. Sukri bonds are only available to Indonesian citizens.
The sale of the shariah-compliant SR-008 series is part of government efforts to finance the government's 2016 budget deficit while also deepening the local bond market. Initially, the government targeted to raise between IDR 25 trillion and IDR 30 trillion from this sale. Indonesia's budget deficit in 2016 is estimated at IDR 273.2 trillion, equivalent to 2.15 percent of the nation's gross domestic product (GDP).
Further Reading: Indonesia's Islamic Banking Industry
| SR-008 Sukri Series Indonesia | |
| Issuer |
Perusahaan Penerbit SBSN Indonesia |
| Series | SR-008 |
| Bond Type | Scripless (can be traded on secondary market) |
| Nominal Value | IDR 1,000,000 per unit |
| Offering Period | 19 February - 4 March 2016 |
| Issuance Date | 10 March 2016 |
| Listing Date on IDX | 11 March 2016 |
| Maturity Date | 10 March 2019 |
| Min - Max Subscription | IDR 5 million - IDR 5 billion |
| Coupon Rate | 8.3% |
| Coupon Payment Date | Every 10th of the month |
| First Coupon Date | 11 April 2016 |
| Minimum Holding Period | 1 time coupon payment |
Source: Finance Ministry
History of Sukri Bonds in Indonesia:
| Serie | Coupon | Listing Date | Maturity Date |
Sold (in IDR trln) |
Number of Investors |
| SR-001 | 12.0% | 25/02/2012 | 25/02/2012 | 5.55 | 14,295 |
| SR-002 | 8.70% | 10/02/2010 | 10/02/2013 | 8.03 | 17,231 |
| SR-003 | 8.15% | 23/02/2011 | 23/02/2014 | 7.34 | 15,487 |
| SR-004 | 6.25% | 21/03/2012 | 25/09/2015 | 19.00 | 17,606 |
| SR-005 | 6.00% | 27/02/2013 | 27/02/2016 | 20.87 | 17,783 |
| SR-006 | 8.75% | 05/03/2014 | 05/03/2017 | 19.35 | 34,692 |
| SR-007 | 8.25% | 11/03/2015 | 11/03/2018 | 21.97 | 29,706 |
| SR-008 | 8.30% | 11/03/2016 | 10/03/2019 | 31.50 | 48,444 |
Sources: Kontan & Jakarta Globe