Comfortable and Secure Retirement by Investing in Secondary Market Government Securities

24 March 2025

Plan Retirement with Peace of Mind through Secondary Market SBN Investment

The right investment for retirement is key to achieving a stable and comfortable life. Secondary Market Government Securities (SBN) offer a flexible and safe investment solution, with stable and reliable passive income opportunities in the future, while giving you full control over the liquidity of the funds

Secondary Market Government Securities (SBN) are investment instruments in the form of bonds that have been issued by the government that can be traded after the offering period in the primary market ends. Unlike SBN in the primary market which can only be purchased during the offering period, SBN in the secondary market can be traded at any time through the trading mechanism on the stock exchange. This means that investors can buy or sell SBNs that have previously been issued by the government to other parties in the secondary market. This investment provides high flexibility and passive income potential that is suitable for anyone who is planning a calm and prosperous retirement.

Secondary Market SBN Trading Mechanism

Investors who wish to buy SBN in the secondary market can do so through banks or securities that provide bond buying and selling services. SBN prices in the secondary market can fluctuate, depending on interest rates, market demand, and economic conditions, among others.

Difference between Secondary Market and Primary Market

• Primary Market

  Primary Market SBN is where the government first sells Government Securities (SBN) to investors. Investors buy SBN directly when issued by the government with a limited offering period. Investors have the opportunity to get a higher rate of return at 100% (par value).

• Secondary Market

  Secondary Market SBN is a continuation of Primary Market SBN where SBN is bought and sold between investors after SBN from the Primary Market has passed the Minimum Holding Period (MHP). Investors can buy SBN from previous holders or sell SBN owned at prices that adjust market conditions.

Why Secondary Market Government Bonds are the Right Choice for a Comfortable and Secure Retirement?

When planning for retirement, financial comfort and income stability are top priorities. Secondary Market Government Bonds provide a safe, stable and flexible investment solution, allowing you to enjoy investment returns without worrying about disturbing your principal or investment capital.

Here are some of the key benefits of Secondary Market SBN that make it ideal for retirement preparation:

• Investment Security

  SBNs are issued by the government and therefore have a very low risk of default. This investment is ideal for retirement preparation that requires high security. Suitable for those who want to have a steady source of income in retirement without worry.

• Fixed and Stable Yields

  SBN provides fixed coupons or rewards that are paid periodically, thus providing a stable cash flow for investors. This income can be a substitute for active income after retirement, helping to maintain your lifestyle without compromising your principal.

• Flexibility: Can be Sold at Any Time

  If investors need funds before maturity, SBN in the secondary market can be resold at the current market price. This is ideal for retirees who want to retain control over the liquidity of their funds.

• Capital Gain Potential

  If investors buy SBN when prices are low and sell them when prices rise, they can benefit from the difference between the purchase price and the selling price.

Types of Secondary Market Government Securities that Can Be Purchased at Maybank

1. Government Securities (SBN)

   • ORI (Indonesian Retail Bonds): Suitable for individual investors with fixed coupon and tradable.

   • FR (Fixed Rate): SBN with a fixed coupon that is often used in long-term portfolios.

   • INDON: Indonesian government bonds denominated in USD.

   
   
2. State Sharia Securities (SBSN)

   • SR (Retail Sukuk): An Islamic investment alternative with a fixed coupon and can be traded.

   • PBS (Project Based Sukuk): Islamic government securities with fixed coupons that are often used in long-term portfolios.

   • INDOIS: : USD-denominated sovereign sukuk.

More information about Government Securities (SBN) Click here.

Strategies to Optimise Government Bonds for Retirement

There are several strategies that you can follow when buying secondary market government securities , among others:

• Buy at a Discount or High Yield

  When interest rates are high, bond prices tend to fall. This is the right moment to buy SBN at a lower price.

• Choose Tenor according to Retirement Age

  Choose SBN with a maturity that matches your retirement plan to maximise investment benefits.

• Coupon Reinvestment

  Use the coupons received to buy back SBN or other investment instruments so that profits continue to grow.

• Sell When Prices Rise

  If the price of SBN rises in the secondary market, selling it can provide benefits from capital gains.

• Portfolio Diversification

  Combine SBN investment with other products such as Combine SBN investment with other products such as , gold , or time deposits in M2U ID App to get a more stable and optimised portfolio.

Passive Income Simulation for Comfortable Retirement from Secondary Market Government Securities

Retirement should be enjoyed with peace of mind, without worrying about monthly expenses. One smart way to make it happen is by relying on coupons from Secondary Market Government Securities as a regular income. The following is a calculation simulation to help you see the potential income from SBN investment:

Investment Assumptions :* this calculation is only a simulation, please recalculate when making a purchase

• Investment in Government Securities series FR 107
• Purchase assumption is made on 5 March 2025
• SBN type: FR with coupon 7.125% per annum
• Coupon tax : 10%
• Coupon Payment Frequency: Every 6 months (August and February)
• Initial Investment: : IDR 1 billion
• Retirement Period: -+20 years (until 2045)

Calculation of Coupon Received

FR coupons are paid once every 6 months, so the calculation is:

• Gross coupon income per half year:
  (7.125%×IDR 1.000.000.000)÷2= IDR 35.625.000


• Deduct 10% tax:
  35,625,000×(1-10%)= IDR 32,062,500

Total Income During Retirement

If the retirement period lasts until 15 Aug 2045, the total passive income received:
IDR 1,314,956,100

Assumed funds received at the end of the period:

IDR 2.314.956.100

So with a Secondary Market SBN investment with a placement value of IDR1 billion and a coupon of 7.125%, you can earn IDR35 million gross per semester during retirement. This provides a stable and greater passive income, ensuring a more comfortable retirement without reducing the initial investment capital.

Prepare for Retirement from Now on, Practical Secondary Market SBN Investment via M2U ID App

You can invest in Secondary Market SBN practically through M2U ID App, here are the advantages of investing in M2U ID App.

• Buy and sell SBN in the palm of your hand.
• Can be purchased starting from Rp1 million
• Competitive prices and real time
• Available yield to maturity estimation calculation
• Free transaction and custodian fees

No need to wait for old age to start thinking about retirement comfort. The sooner you invest, the greater the potential returns you can enjoy later. With regular coupon income, low risk, and easy transactions on M2U ID App, Secondary Market SBN can be a strong foundation for a safe and comfortable retirement life.

Let's start designing a peaceful, worry-free, and prosperous retirement by investing in Secondary Market Government via M2U ID App now!