The Investment Management Agency Daya Anagata Nusantara (BPI Danantara) has announced the issuance of a new debt instrument called Patriot Bond, targeting Indonesia’s conglomerates. The bond aims to raise Rp 50 trillion, divided into two tranches of Rp 25 trillion each. Issuance will begin on October 1, with tenors of five and seven years, and a fixed 2% coupon.

The offer is not open to the public. Instead, it will be issued through private placement and offered only to a select group of investors, including major business groups in Indonesia.

According to The Straits Times, representatives from large business families such as the Salim Group and Sjamsul Nursalim’s family attended a government briefing on August 23. Several of these business figures reportedly agreed to invest Rp 2–3 trillion per entity.

Patriot Bond Offers Lower Yield Than Government Instruments

The 2% yield on Patriot Bond is below market rates. Currently, Indonesia’s five- and seven-year government bonds offer returns of 5.9% and 6.16%, respectively. Other government-backed instruments, such as ORI (Obligasi Negara Ritel) and SBR (Savings Bond Ritel), offer higher and fixed coupon rates, with full principal and interest payments guaranteed under Law No. 24 of 2002.

For comparison:

• ORI025T3: 6.25%
• ORI025T6: 6.4%
• SBR013T2: 6.45%
• SBR013T4: 6.6%

Despite the lower return, a senior Danantara official told The Straits Times, “If the yield wasn’t low, it wouldn’t be called a ‘Patriot’ bond.”

The bond name, according to the publication, implies a show of patriotism in supporting the offering.

Proceeds to Fund Waste-to-Energy and Government Priorities

Funds raised from the bond will be allocated to waste-to-energy projects, as part of national priorities. Danantara explained that the bond is designed to strengthen national financing independence and expand the domestic funding base.

“Through this bond, the country gains a stable mid- to long-term funding source, while businesses gain access to a secure and impactful investment instrument,” said Pandu Sjahrir, Danantara’s Chief Investment Officer.

The Patriot Bond is also intended to support government programs, including the energy transition, social infrastructure development, and projects outlined under the current administration.

Top Business Leaders Express Support for the Patriot Bond

Several prominent Indonesian business figures have voiced support for the bond issuance.

Prajogo Pangestu, founder of Barito Group, said:

“Indonesia’s development is a shared responsibility. Patriot Bonds offer the business community a chance to contribute to national economic transformation.”

Franky Widjaya, head of Sinar Mas Group, stated:

“This instrument provides investment certainty while accelerating inclusive growth.”

Garibaldi 'Boy' Thohir, from the Adaro Group, remarked:

“Patriot Bonds reflect the spirit of mutual cooperation. This instrument will fund waste-to-energy projects that are urgently needed by the Indonesian people.”

The issuance marks Danantara’s first bond offering since its establishment in February 2025, as highlighted by The Straits Times.

Source:

https://finance.detik.com/bursa-dan-valas/d-8084627/apa-itu-patriot-bond-obligasi-baru-danantara-yang-bidik-rp-50-triliun

https://www.cnbcindonesia.com/news/20250827235405-4-661960/media-asing-soroti-patriot-bond-danantara-targetkan-konglomerat-ri

https://www.cnbcindonesia.com/market/20250828124828-17-662133/ini-kata-prajogo-franky-boy-thohir-soal-patriot-bond-danantara

PHOTO: KOMPAS.COM/YOHANA ARTHA

This article was created with AI assistance.