ORI013 sales miss the target

October 25, 2016, 04.46 PM  | Reporter: Maggie Quesada Sukiwan, Wahyu Satriani
 ORI013 sales miss the target


JAKARTA. The offering process of serie 13 state bond (ORI013) has completed. As expected earlier, government missed the sales target for ORI013.
Directorate General of Risk and Funding Management at Ministry of Finance recorded only a worth of Rp 19.84 trillion of total demands for ORI013.

This amount is lower than Rp 20 trillion of government target. Government even booked a record of demands for ORI012, which were worth of Rp 27.53 trillion. Government finally reaped Rp 19.69 trillion from by offering ORI013.

Government recorded orders for ORI013 from 34,331 investors, 50.45% of which were the new investors. The low public interests on ORI013 have been identified during the offering period.

A number of sales agents, including PT Bank Rakyat Indonesia Tbk claimed to struggle to sell the ORIs. “BRI booked an Rp 502 billion of ORI013 orders, or 89% of the target,” Director of Consumers Affairs at BRI Sis Apik Wijayanto, Direktur Konsumer BRI told KONTAN on Monday (24/10). The bank actually only set an Rp 579 billion of sales target.

Previously, Sis Apik said that the low investors’ interests were caused by the low rate of ORI coupon, which is 6.6%, whereas multi funds products offer an 8% return annually.

Analyst at Capital Asset Management Desmon Silitonga also estimated that the ratio of ORI013’s coupon was low and less attractive. Let alone, government previously issued ORI012 that offered a 9% of coupon rate. “Some investors did not want to shif their investment in the previous ORI to ORI013,” Desmon analyzed.

Investors were likely to choose other investment products, which are more profitable, such as stocks. Furthermore, the minimum holding period for two months has closed the opportunity for investors to enjoy profits at the secondary market.

However, Desmon still estimated ORI013 as an attractive investment alternative. He estimated that the price of the ORI may increase by 100-200 bps after traded at secondary market. “It depends on the market condition. However, economic condition will improve in 2017 and bring positive impacts to markets,” Desmon said.

Based on the ages group, 74.04% of the total investors of ORI013 are 40 years and older. Director General of Risk and Funding Management at Ministry of Finance Robert Pakpahan said that the group age control a worth of Rp 15.73 trillion or 79.89% of total orders. (Translator: Muhammad Farid)

 

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