Indonesia’s retail government bond market is offering something that immediately catches investors’ attention: yields reaching 7% a year, combined with a lower tax rate than ordinary bank deposits.

The clearest recent example is ORI030. Its three-year tranche carries a fixed annual coupon of 6.90%, while the six-year ORI030T6 pays 7.00%. The government completed settlement of the issuance on August 5, 2026.

That does not mean every Indonesian government bond pays 7%. Different series carry different coupon structures, maturities and terms.

But the current figures explain why retail government securities are being compared with bank deposits.

The Tax Difference Changes the Calculation

Income from bonds, including government securities and sukuk, is subject to a 10% final income tax for domestic taxpayers under Government Regulation No. 91 of 2021. The definition covered by the regulation includes conventional bonds and securities issued under Islamic principles.

Interest on ordinary bank deposits, meanwhile, is generally subject to a 20% final tax for domestic taxpayers, subject to applicable exemptions and special rules. One important exemption applies to qualifying deposits and savings balances not exceeding IDR7.5 million.

The result is a noticeable difference in after-tax income.

A 7% annual coupon becomes approximately 6.3% after a 10% tax.

A 3% deposit rate becomes approximately 2.4% after a 20% tax, assuming the full standard deposit tax applies.

Those calculations are illustrations rather than a universal comparison. Deposit rates vary by bank, maturity and amount, while government bond coupons change from one issuance to another.

Why the 7% Headline Is Reasonable—With a Caveat

The source material for this article cites Finance Ministry official Deni Ridwan as saying that government securities can offer returns reaching around 7%, compared with an illustrative deposit rate of around 2%–3%.

Current official issuance data supports the “up to 7%” part of that comparison.

ORI030T6 pays a fixed 7.00% annual coupon, while ORI030T3 pays 6.90%.

Other 2026 products paid less. The three- and five-year SR024 retail sukuk offered fixed annual returns of 5.55% and 5.90%, while ST016 began with minimum floating returns of 6.05% and 6.25%.

The important word is therefore “up to.”

Investors should not assume every new government security will automatically match the 7% coupon.

What Makes Sovereign Sukuk Different?

Retail sukuk are Islamic government securities rather than conventional interest-bearing bonds.

Indonesia’s 2008 Sovereign Sharia Securities Law requires the government to pay the return and nominal value of SBSN according to the issuance contract. Funds for those obligations are provided through the state budget until the obligations expire.

This legal structure is a major reason retail government securities are regarded as carrying very low sovereign default risk.

It does not eliminate every investment risk.

Tradable securities can fluctuate in price. An investor who sells in the secondary market before maturity may receive more or less than the original investment amount.

Holding until maturity and selling early are therefore very different strategies.

SR025 Is the Next Retail Sukuk to Watch

Indonesia’s next scheduled retail sukuk is SR025.

The indicative 2026 issuance calendar places the offering between August 21 and September 16, 2026. Major government-security distributors including BCA and Bank Mandiri list the same tentative period.

Initial product information shows two maturities:

• SR025T3: three years.

• SR025T5: five years.

The product is expected to use a fixed-rate structure, with a minimum investment of one unit or IDR1 million. Returns are scheduled to be paid monthly, on the 10th.

But one critical number is still missing.

As of August 10, the official coupon rate has not yet been announced. Distributor product pages still show the return field without a percentage.

Investors should therefore avoid headlines claiming SR025 itself will pay 7%.

What IDR100 Million Could Produce

Consider a simple example.

An IDR100 million investment paying a 7% annual coupon generates IDR7 million in gross annual income.

After a 10% final tax, the net amount is approximately IDR6.3 million, equivalent to an average of IDR525,000 per month.

The actual coupon payment mechanics depend on the individual security’s terms and payment schedule.

For comparison, an IDR100 million bank deposit earning 3% generates IDR3 million before tax. Applying a 20% final tax would leave approximately IDR2.4 million.

This is why the tax difference can materially affect the comparison.

But it still does not prove that government bonds are always superior to deposits.

Liquidity Matters as Much as Yield

A bank deposit and a tradable retail government security solve different financial needs.

A deposit is designed primarily as a bank saving product held for a specified term. Early withdrawal may be subject to the bank’s rules or penalties.

Tradable government bonds and retail sukuk can eventually be sold in the secondary market, but their market prices can move.

When market yields rise, an existing fixed-rate bond may trade below its purchase price. When market yields decline, the bond’s price may rise.

An investor who needs money unexpectedly can therefore face a capital loss if forced to sell at an unfavourable price.

That risk is less relevant to someone who intends and is able to hold the security until maturity.

The Key Questions Before Buying SR025

Investors waiting for SR025 should focus on more than its headline coupon.

The first question is the final rate. A higher coupon increases cash income, but investors should compare it with market yields available when the offer begins.

The second is maturity. Three years and five years expose investors to different periods of interest-rate and liquidity risk.

The third is the likelihood that the money will be needed before maturity.

The fourth is whether the investor actually needs a Sharia-compliant, fixed-income product or has another financial objective.

And finally, investors should consider diversification. Even a government-backed instrument should form part of a broader financial plan rather than automatically becoming the destination for all available cash.

Bottom Line

Indonesia’s retail government securities can currently offer yields of up to 7%. ORI030T6 is the clearest recent example, with a fixed 7.00% annual coupon.

The tax treatment is also favourable relative to ordinary deposits: bond income is generally subject to a 10% final tax, compared with a standard 20% final tax on qualifying deposit interest.

The next product, SR025, is tentatively scheduled for August 21 to September 16, with three- and five-year maturities. Its coupon has not yet been announced.

That distinction matters. The accurate story is that Indonesian retail government bonds can currently yield as much as 7%—not that every upcoming government sukuk is guaranteed to pay 7%.

Disclaimer: This article is for informational and educational purposes only. It does not constitute personalised investment advice or a recommendation to purchase government securities, deposits, or any other financial product.