September 5, 2025 | 11:16 am
TEMPO.CO, Jakarta - President Prabowo Subianto has lauded the Patriot Bonds launched by the sovereign wealth fund Danantara. These bonds are used to finance various national development programs, including the construction of waste-to-energy power plants (PLTSa) in 33 locations across Indonesia.
"Patriot Bonds are excellent, and it's highly successful. Patriot Bonds demonstrate trust in the country, based on what the President has conveyed and what Pak Rosan (Roeslani) has advocated. Danantara's performance was excellent, proving trust in the country," said Minister of Housing and Settlement Areas Maruarar Sirait after attending a limited meeting at the Presidential Palace in Jakarta on Thursday, September 4, 2025, as quoted from an interview recording received on Friday, September 5, 2025.
During the limited meeting, Maruarar mentioned that President Prabowo highly appreciated Danantara's performance. In the same location, at a separate time, Investment Minister/CEO of Danantara, Rosan Perkasa Roeslani, confirmed that several conglomerates, such as the Djarum Group and Prajogo Pangestu, have shown interest in Danantara's Patriot Bonds. But he stopped short of revealing further details on the matter.
"Everyone is participating, you know," Rosan said, referring to national entrepreneurs.
Danantara launched the Patriot Bonds last month during a meeting with a number of business tycoons in Jakarta. The launch event also included Cabinet Secretary Teddy Indra Wijaya, who gave a speech in front of the entrepreneurs.
The Patriot Bonds are the first debt instruments issued by Danantara and are believed to be able to raise funds up to Rp50 trillion. Patriot Bonds are issued in two series, with a tenor of five and seven years. Both series offer a yield of 2 percent.
On a separate occasion, Danantara's CIO Pandu Sjahrir explained last month that Patriot Bonds are a strategic financing instrument commonly used in various countries to strengthen national financing independence. Some countries that have used the Patriot bonds scheme include Japan and the United States.
With the presence of Patriot Bonds, Pandu explained that the country can obtain stable medium- to long-term funding sources, while businesses have access to safe investment instruments beneficial to the national economy.
Executive Director of the Center of Economic and Law Studies (Celios), Bhima Yudhistira Adhinegara, believes that the presence of Patriot Bonds will attract banking deposits from conglomerates, who will turn to these debt instruments. "Because it is packaged in a nationalist form that forces conglomerates to buy Patriot Bonds," he said in a written statement on Monday, August 27, 2025.
On the other hand, Bhima also cautioned about the risk of liquidity pressure on banks due to the crowding-out effect of Danantara, which will disrupt the distribution of bank credit. This condition could even delay the transmission of the Bank Indonesia reference interest rate reduction to bank loan interest rates. "Existing banks are already competing for funds with the government's need to issue State Securities. In addition, there are Patriot Bonds targeted at domestic buyers," said Bhima.
Alif Ilham Fajriadi contributed to the writing of this article.
Editor’s Choice: Indonesia Danantara's Patriot Bonds May Overtake Bank Deposits
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