Instruments and Portfolios
Investment Instruments
Time Deposit
It is a banking product with certain time-frame deposit and withdrawal. Time deposit is a low-risk investment instrument guaranteed by the Indonesia Deposit Insurance Corporation (LPS).
Government Bonds (SUN)
SUN is government bonds issued by the Indonesian government to finance the government budget. It is in the form of a debt acknowledgment letter whose payment of interest and principal are guaranteed by the Indonesian government.
SEO Bonds
SEO bonds are investments in the form of debt securities issued by SOEs. Bonds contain a promise from the issuing party to pay the investment returns in the form of interest in a certain period and pay off the principal at a predetermined time to the buyer of the bonds.
Note: Investment in the following instruments maintains the nominal stability of the endowment fund in the future.
Investment Revenue
Investment revenue is returns on the Endowment Funds for Education, as stated in Chapter II of Presidential Regulation Number 12 of 2019 on Sources of the Endowment Funds for Education article 3 paragraph 2. This investment return is categorized as Non-Tax State Revenue (PNBP). The investment returns on the Endowment Funds for Education are treated as Non-Tax State Revenue (PNBP) and used to finance LPDP’s two major services, namely Scholarship Services for Master and Doctoral degrees and Research Funding Services.
Selected Portfolios
Green Bonds
LPDP is committed to supporting investments prioritizing environmental, social, and corporate governance (ESG) concerns. To support ESG-oriented investment, LPDP invests in PT SMI's green in compliance with best practices of green bond issuance worldwide. PT SMI manages the investment to finance several nationwide projects classified in the renewable energy sector and eco-friendly transportation. Its commitment to green-bond investment has won LPDP the award as Best Green Investor by PT SMI.
Real Sector of Property
LPDP invests the managed funds through various banking instruments offered by different banks. One of the banks is the leading banking for housing loans (KPR), namely Bank BTN (Persero). Also, LPDP’s investments strengthens the real sector and contributes to some aspects such as output multiplier, income multiplier, and development impacts on the national economic growth.