Structured Products

Alternatives of foreign currency investment with higher potential returns and more flexible tenor.

 

In compliance with Bank Indonesia Board of Governors Regulation (PADG BI) No. 24/10/PADG/2022, the Customer's participation in the Structured Product at Bank Danamon is limited to a maximum of the Customer's daily average balance for the last 90 (ninety) calendar days at Bank Danamon in the same currency as the Structured Product’s placement.

Product Benefits

Higher Returns

Higher potential return than conventional foreign currency time deposits.

Various Foreign Currency Options

Various currency choices to suit your needs and currency preferences.

Trusted

Represented and assisted by Certified Sales for Danamon Structured Product.

 

Market Linked Deposit (MLD)

100% Protection of Principal Amount

This product is ideal for Customers who want 100% protection on their Principal Amount if the product be held until maturity and obtain a higher rate of return compared to conventional time deposits.

Types of MLD Options

One Touch European Style

The maximum investment return is achieved if the Option reaches the upper/lower limit within the specified date and time.

No Touch European Style

The maximum investment return is achieved if the Option does not reach the upper/lower limit within the specified date and time.

Double No Touch European Style

The maximum investment return is achieved if the Option does not reach both the upper and lower limits set within the specified date and time.

 

MLD Features

8 Choices of Foreign Currencies  (USD, AUD, SGD, EUR, CNY, GBP, JPY, NZD)

Subject to market conditions and offering from the bank.

Higher Potential Returns

Offers higher returns than regular time deposits.

Affordable Minimum Placement

Starts from USD 10,000 or equivalent.

Alternative of Short-Term Investment

Starts from 1 (one) month to 1 (one) year.

No Fees

No management or placement fees.

 

MLD Risk Exposure

Market Risk

The rate of return is dependent on the movement of the underlying financial instrument.

Liquidity Risk

It is not recommended to terminate MLD before maturity date. In the event of withdrawal before maturity, the Bank cannot guarantee a 100% return of principal including the ongoing interest payments on MLD placements.

Other Risk

  • - MLD cannot be automatically renewed
  • - MLD cannot be used as collateral for loans
  • - MLD is not guaranteed by the Deposit Insurance Corporation (LPS)

MLD Illustration

Customer joins MLD with below details:
Placement: USD 50,000
Currency: USD
Currency Pairing: AUD/USD
Spot: 0.6927
Lower Limit: 0.6897
Tenor: 3 months (=90 days)
Minimum Payout: 0.50% gross
Maksimum Payout: 2.70% gross
MLD Type: European One Touch
Payout Description:

  • If in the fixing date and time does not touch lower limit, then Customer get Minimum Payout (0.50% gross per annum)
  • If in the fixing date and time touch lower limit, then Customer get Maximum Payout (2.70% gross per annum)
Ilustrasi MLD-1

Scenario A
At fixing date and time, rate at 0.6917 → does not touch lower limit, then Customer get Minimum Payout.

Ilustrasi MLD-2

Customer Earnings:
Placement Amount + ((Placement Amount x Payout Amount x (Tenor/365)) – Tax 20%)
= USD 50,000 + ((USD 50,000 x 0.5% x (90/365)) - Pajak 20%)
= USD 50,049.32 net

Scenario B
At fixing date and time, rate at 0.6887 → touch lower limit, then Customer get Maximum Payout.

Ilustrasi MLD-3

Customer Earnings:
Placement Amount + ((Placement Amount x Payout Amount x (Tenor/365)) – Tax 20%)
= USD 50,000 + ((USD 50,000 x 2.7% x (90/365)) – Tax 20%)
= AUD 100,197.26 net
= AUD 100,197.26 x 0.6380 = USD 50,266.30 net

Dual Currency Investment (DCI)

High Return

This product is suitable for customers seeking substantial returns alongside a guaranteed rate of return. You are eligible to invest in foreign currency with DCI if you:

  1. Are an individual customer
  2. Hold a portfolio of assets including cash, current accounts, saving accounts, and/or time deposits with minimum amount of IDR 5,000,000,000.00 (five billion rupiah) or its equivalent in foreign currencies
  3. Have suitable risk profile for DCI

DCI Features

9 Currency Choices

Choices for placement in Rupiah and 8 foreign currencies (USD, AUD, SGD, EUR, CNY, GBP, JPY, NZD) with more than 21 currency pairing alternatives.

Higher Potential Return

Offers higher returns over conventional foreign currency time deposit.

Flexibility

Flexibility to choose the currency pair and establish an agreed target rate (strike price) at the placement date.

Defined Rate of Return

With a return on the principal value of the investment denominated in or alternative currency as per the exchange rate performance of the underlying currency at the date and time of determination.

Short-term Investment Alternative

Starting from 1 (one) week.

European Style Type

The determination of the placement result is determined on the date and time of determination.

 

DCI Risk Exposure

Market Risk

The final return on investment upon maturity is dependent upon the performance of the underlying currency pair.

Liquidity Risk

It is not recommended to terminate DCI before the maturity date. In the event of an early termination, the Customer will incur an early termination fee.

Other Risks

  • - DCI cannot be rollover automatically; every DCI placement is a new placement
  • - DCI cannot be used as collateral for loans
  • - DCI is not guaranteed by the Deposit Insurance Corporation (LPS)
  • - Customer investment at maturity date can be in base currency or converted to alternate currency, depends on the performance of underlying currency

DCI Illustration

  1. Illustration for DCI Foreign Currency – Rupiah:

    Customer join DCI with below details:
    DCI Placement: USD 100,000
    Base Currency: USD
    Alternative Currency: IDR
    Spot USD/IDR at Transaction Date: 14,850
    Strike Price: 14,890
    Tenor: 1 month (=32 days)
    Rate of Return: 3% gross per annum
    Tax: 20%

    Ilustrasi MLD-1

    Scenario A
    On the fixing date and time, Spot USD/IDR 14,870 → spot at fixing date and time does not reach strike price, then Customer will receive principal and return in USD.

    Ilustrasi MLD-2

    Customer Earnings:
    Placement Amount + ((Placement Amount x Payout Amount x (Tenor/365)) – Tax 20%)
    = USD 100,000 + ((USD 100,000 x 3% x (32/365)) – Tax 20%)
    = USD 100,210.41 net

    Scenario B
    On the fixing date and time, Spot USD/IDR 14,935 → spot at fixing date and time reach strike price, then Customer will receive principal and return in IDR.

    Ilustrasi MLD-3

    Customer Earnings:
    Placement Amount + ((Placement Amount x Payout Amount x (Tenor/365)) – Tax 20%)
    = USD 100,000 + ((USD 100,000 x 3% x (32/365)) – Tax 20%)
    = USD 100,210.41 net
    = USD 100,210.41 x 14,890 = IDR 1,492,133,004.90 net

    If the Customer in Scenario B directly sell the DCI result back to the original currency (USD), they will receive USD equivalent to: IDR 1,492,133,004.90 / 14,935 = USD 99,908.47


  2. Illustration for DCI Foreign Currency – Foreign Currency:

    Customer join DCI with below details:
    DCI Placement: AUD 100,000
    Base Currency: AUD
    Alternative Currency: USD
    Spot AUD/USD at Transaction Date: 0.6280/0.6287
    Strike Price: 0.6380
    Tenor: 1 month (=30 days)
    Rate of Return: 3% gross per annum
    Tax: 20%

    Ilustrasi MLD-1

    Scenario A
    On the fixing date and time, Spot AUD/USD 0.6250 → spot at fixing date and time does not reach strike price, then Customer will receive principal and return in AUD.

    Ilustrasi MLD-2

    Customer Earnings:
    Placement Amount + ((Placement Amount x Payout Amount x (Tenor/365)) – Tax 20%)
    = AUD 100,000 + ((AUD 100,000 x 3% x (30/365)) – Tax 20%)
    = AUD 100,197.26 net

    Scenario B
    On the fixing date and time, Spot AUD/USD 0.6400 → spot at fixing date and time does not reach strike price, then Customer will receive principal and return in USD.

    Ilustrasi MLD-3

    Customer Earnings:
    Placement Amount + ((Placement Amount x Payout Amount x (Tenor/365)) – Tax 20%)
    = AUD 100,000 + ((AUD 100,000 x 3% x (30/365)) – Tax 20%)
    = AUD 100,197.26 net
    = USD 100,197.26 x 0.6380 = USD 63,925.85

    If the Customer in Scenario B directly sell the DCI result back to the original currency (AUD), they will receive USD equivalent to: USD 63,925.85 / 0.6400 = AUD 99,884.14

MLD and DCI Comparison

Feature Return Rate LPS Guarantee Renewal/Roll-over Disbursement Before Maturity Placement Principal Protection Proof of Placement
Market Linked Deposit The rate of return provided is dependent on the performance of the underlying financial instruments. Not guaranteed Not renewable Early termination is not allowed in principle Principal placement is 100% protected if held to maturity Confirmation letter of MLD participation
Dual Currency Investment The rate of return is paid in accordance with the agreement on the Transaction Date and is payable at maturity. Not guaranteed Not renewable Early termination is not allowed in principle Does not provide protection of the principal placement value. The Customer at maturity may receive payment in primary currency or alternative currency. Confirmation letter of DCI participation

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Headlines on the economy, business, and actual data on financial markets such as stock, bonds, and foreign exchange markets selected from various reliable sources.

 

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24 Hours Information & Complaint Service

Email

hellodanamon@danamon.co.id

Website

https://www.danamon.co.id

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