Bareksa Immediately Sells Corporate Bonds, Gold, Mutual Funds for Marriage and Umrah

Bareksa is actively developing its products and services by launching marketplace for corporate bonds, online gold, and mutual funds wrapped for marriage and umrah. The company will work with various partners and products in rotation until the end of this year.

Co-Founder and CEO Bareksa Karaniya Dharmasaputra explained that this innovation is part of the company's ambition to provide access to various investment products, not just mutual funds and online retail bonds.

"In the future, Bareksa will grow faster than when it was first established. Because technology and the retail segment have an important role in online investment," he said yesterday (27/5).

The sale of these corporate bonds will be conducted for the first time with a subsidiary of the Astra Group, FIFGroup. It is possible that other companies can also enter to sell their bonds through Bareksa.

Karaniya sees FIF as the second most active corporation in Indonesia to issue bonds to finance motorcycle loans. In total, the value of bonds released by FIF reached Rp42 trillion, with outstanding around IDR 9 trillion.

The rating is also quite promising, idAAA (XNUMXPS A) from Pefindo, representing the ability of the obligor (bond issuer) to meet long-term financial obligations on debt securities. This rating is considered very safe, just like buying government bonds.

VP Corporate Finance and Treasury Division of FIFGroup Jerry Fandy added that the company is interested in attracting retail investors because of its significant growth every year. Although nominally not as big as a corporation, its stable growth is an interesting fact.

"The market is huge. We can also see from the growth of people who buy deposits through banks, how much interest can they get, let alone there are taxes. Meanwhile, in bonds, yieldit must be higher," said Jerry.

From the corporate investor's perspective, there is saturation that is feared to reduce interest in buying bonds. So far, FIF has always relied on corporate and foreign investors. Even so, the company is still in the education stage to increase participation from retail investors.

This corporate bond is planned to be sold on the Bareksa platform at the latest in the final quarter of 2019. The price starts at Rp. 500 thousand, lower than the purchase of SBN and sukuk of Rp. 1 million.

The maximum tenor is 1 year, although no final decision has been made. Likewise in terms of interest offered. Usually FIF offers interest of around 7,55% per year for corporate investors.

The types of investors that will be targeted are: firstmarket, meaning those who buy past the offer period. There are no special conditions to become a buyer, it's just that you need to prepare an NPWP.

It has not been determined how much portion is prepared for retail investors in the implementation of bonds that will be held by FIF. However, currently the company has an allotment for the issuance of bonds in a series of Continuous Public Offering IV (PUB IV) with a total ceiling of Rp. 15 trillion which is valid for two years.

The company is still in the period bookbuilding for the issuance of bonds amounting to Rp. 1,5 trillion. Well, around the third quarter of 2019 will re-issue bonds with an undisclosed value.

"Can't speak yet because it depends on the market at the time bookbuilding this. Hopefully the second half of the situation will be clearer and more stable post-election and there will be clarity from the trade war."

Other product development

At the same time, Karaniya also revealed that the company is expanding its cooperation with various partners to attract more new customers up to one million people by the end of this year. Also, improving the payment system with Ovo to make transactions easier for customers.

Bareksa works with Bride story to facilitate the dreams of Bridestory users who want to get married without credit. Underlying the product used is a money market mutual fund with a measurable profit stability.

Likewise for Umrah products, Bareksa specifically works with Grab for driver partners. Bareksa has hooked a trusted Umrah service provider to prevent fraud that is rife.

"These two products are called Dream Investing, make dreams come true by investing in mutual funds. This Umrah product is planned to be released in June 2019, and has already reported to the OJK regarding the mechanism. Meanwhile, with Bridestory, the plan is for the fourth quarter of 2019."

The online gold sale in Bareksa is planned to be present at the same time as Bridestory. The company cooperates with IndoGold as an official certified gold selling agent from Antam. IndoGold is also a partner for BukaEmas in Bukalapak.

Mutual fund products at Bareksa will also be available in the app soon Egg in the third quarter of 2019. Karaniya hopes that Ovo users can play their electronic money which idle into mutual fund products, so that they can provide added value.

In the near future, Ovo will also be available as an option to purchase mutual funds at Bareksa. So far, every time a customer buys mutual funds, they must manually transfer them to the custodian bank account and report the proof of transfer to Bareksa.

"Technically we are ready [to work with Ovo]."

For five years, the company now has 510 thousand customers. Claimed to represent 40% of the total mutual fund investors in Indonesia. From this figure, around 17 thousand people bought government bonds (sukuk and SBR).

The amount of public funds that have been invested has reached more than Rp. 2,9 trillion with total Asset Under Management (AUM) funds exceeding Rp. 1,1 trillion. There are 212 mutual fund products sold through Bareksa in collaboration with 43 investment managers (MI).

In terms of partnership, the company has collaborated with Tokopedia, Bukalapak, Doku, Ministry of Finance, and CekAja for distribution of investment products.