Yunieta Anny Nainggolan, a lecturer at the SBM ITB, in collaboration with Ahmad Danu Prasetyo, a senior analyst at the OJK Institute, has recently published a book that explores the fundamentals of bond investment for the general public. The book aims to provide a comprehensive yet accessible introduction to fixed-income instruments, particularly bonds, using a style that is easy for beginners to understand.
Bonds, known for their stable returns and relatively low risk, require a different investment strategy from stocks, focusing on interest rate movements and the issuer’s repayment ability. The book includes real case studies from Indonesia and practice questions, making it especially suitable for students and beginner investors.
“Originally, this book was intended for Master of Science in Management students, but we wanted to extend its benefits to retail investors who are interested in learning about bond investment,” said Yunieta on Saturday (5/5).
Yunieta and Danu developed the book as a practical guide with a local perspective. The main motivation for writing it, they noted, is the ongoing lack of financial literacy and inclusion regarding bonds and sukuk in Indonesia.
“The debt securities and sukuk (EBUS) market remain smaller than the stock market, with daily transaction volumes of around IDR 12 trillion,” said Danu. “Yet the potential is significant, as anyone can issue debt, making it more inclusive.”
The book covers a range of key topics, including the role of bond-issuing institutions, the concept of portfolio immunization, and Islamic financial instruments such as sukuk. One major concern it addresses is the risk of default.
Yunieta emphasized that bond risk is reflected in credit ratings, the higher the rating, the lower the risk. However, many retail investors still expect high returns with minimal risk, without fully understanding the implications.
“Every investment carries risk. The investor’s job is to evaluate the level of risk and return that they are willing to accept,” she explained.
An important topic discussed is immunization, a strategy for matching investment duration with funding needs to protect portfolios from interest rate fluctuations. By calculating the present value of coupon payments and the bond’s principal, and considering maturity, investors can still meet financial goals even if interest rates change.
“Immunization ensures that bond investment income and outflows remain balanced despite market interest rate changes. Aligning duration and cash flow allows investors to shield their portfolios from volatility,” said Yunieta.
Danu also addressed public questions about sharia investments, which are often associated with religious principles. He explained that sukuk offers a sharia-compliant alternative, backed by real assets as collateral, unlike conventional bonds that are based solely on repayment promises. Sukuk structures include murabahah (sale and purchase), ijarah (lease), and mudharabah (profit-sharing) schemes.
“Sukuk is grounded in real assets, which provides certainty and aligns with sharia principles, making it an appealing option for investors with religious considerations,” he said.
According to Danu, retail bonds such as ORI (Obligasi Ritel Indonesia) are convenient because they offer fixed coupons, flexible tenors, and monthly payments that resemble a regular income stream. If needed, investors can sell their bonds on the secondary market, although prices are influenced by interest rate fluctuations. In addition, these instruments carry relatively low risk and are subject to lighter taxation
“Investing is important because we all have financial goals. Bonds are a safe, reliable, and low-risk investment vehicle,” said Danu.
Yunieta urged the public to start investing. She stressed that planning finances early is essential, as everyone will eventually reach a stage in life when they no longer work and wish to enjoy financial independence.
“Start planning your finances now. It’s easier than ever. You can buy bonds through banking apps or mutual fund platforms,” she added.
Bonds are increasingly seen as investment instruments with risks comparable to deposits, but with higher returns. Danu and Yunieta also plan to publish a follow-up book with more in-depth discussions on bonds to reach and educate a broader audience.