State Sharia Securities (SBSN) are Government Securities issued based on sharia principles, as proof of participation in SBSN assets, in either rupiah or foreign currencies (Law No. 19 of 2008). SBSN is an investment instrument that can provide potential fixed returns with relatively low risk.

Bank Muamalat Indonesia offers you a solution through investment in a range of SBSN products. The maturity period of SBSN depends on each series issued by the Government of the Republic of Indonesia. Currently, Bank Muamalat only markets SBSN issued by the Government of the Republic of Indonesia, consisting of:

• Retail SBSN (Retail Sukuk and Savings Sukuk)
• Project-Based SBSN

What are the benefits of investing in SBSN instruments? Let’s take a look below:

1. Safe 
   The government fully guarantees (100%) the payment of returns and the nominal value of SBSN.
2. Competitive Yields 
   The returns/coupons paid are very competitive, with a lower tax of 10% compared to deposits at 20%.
3. Sharia Compliant 
   SBSN has received a fatwa and sharia compliance statement from the National Sharia Board – Indonesian Ulema Council.
4. Investment Convenience 
   If you need funds before maturity, Retail Sukuk and PBS can be easily resold in the secondary market (Bank Muamalat as a stand-by buyer), while Savings Sukuk offer early redemption of up to 50% of the total investment value.
5. Easy and Affordable 
   Purchasing SBSN is easy — just have a Bank Muamalat account and an eKTP, and you can start investing.

SBSN can be purchased in the primary or secondary market at Bank Muamalat.

Primary Market

The primary market is where SBSN/Sukuk is traded for the first time to investors. The Ministry of Finance will provide complete information regarding issuance, offering periods, returns, and maturities. Bank Muamalat is an official distribution partner for Retail Sukuk and Savings Sukuk in the primary market.

Secondary Market

Even after the primary offering period ends, investors can buy SBSN in the secondary market, which facilitates trading for those who wish to cash out before maturity. Savings Sukuk (ST) is non-tradable in the secondary market as they have an early redemption feature of up to 50% before maturity, processed online through internet banking.

Knowing the Risks Before Investing

As an investor in SBSN products, there is potential exposure risk that you must learn before investing in the SBSN product.

1. Default risk: Retail State Sukuk has no default risk as returns, and principals are guaranteed by the state.
2. Market risk:? Potential capital loss if selling before maturity at a lower price.
3. Risk liquidity: Potential difficulty in selling in the secondary market, mitigated by Bank Muamalat acting as a stand-by buyer.

Investment Benefits

• Guaranteed. State-guaranteed on Government Regulation no. 19 of 2018
• Profitable. Competitive returns, higher than bank deposits.
• Lower tax.  10% vs 20% for deposits
• Sharia-compliant. Published according to the Fatwa from DSN - MUI (National Sharia Council - Indonesian Ulema Council).
• Regular Income.  Fixed monthly returns for Retail Sukuk and Savings Sukuk or semi-annual returns for PBS
• Liquid * Liquidity after minimum holding period.
• Capital Gain**, potential capital gains in secondary market.
• Affordable, investment starting from IDR 1million.
• Supports national development funding

* Retail Sukuk and PBS trading can be carried out on stock exchange days with sell price in accordance agreement at the time transaction

**Sell / buy price depends on market conditions, capital gain tax is applied

Retail SBSN Order Procedure in the Primary Market

1. Have a Bank Muamalat account (open at a branch or via the Muamalat DIN app).
2. Open a securities account for SID and SRE registration on internet banking.
3. Ensure investment funds are in the account.
4. Place and pay for the order online via internet banking.
5. Tutorial on ordering sukuk via internet banking accessed at http://bit.ly/SukukdiMuamalat
6. Minimum order for Retail Sukuk and Savings Sukuk is IDR 1,000,000.00 (one million rupiah), maximum purchase is Rp. 5,000,000,000.00 (five billion rupiah) or Rp. 10,000,000,000.00 (ten billion rupiah), depending on term sukuk tenor.

Secondary Market Transaction Procedure

Transactions in the Secondary Market can be made after the end time specified minimum holding period.

1. Investors contact Bank Muamalat to inquire about the quotation price on the transaction day, and simulation to purchase or sell.
2. The transaction is based on the price agreed by the Investor with Bank Muamalat
3. Sign purchase/sale forms with required documents.

Principal and Return Payment Mechanism

1. Payments made by the government via Bank Indonesia through the Sub Registry system in 2 (two) workdays before date of coupons payment and / or maturity of SBSN (record date)

2. Bank Muamalat credits investor’s accounts for returns and principal on due dates.

AVAILABLE PRODUCT IN PRIMARY MARKET

More information related Retail Sukuk SR023 can be downloaded here