Airlangga Affirms Merah Putih Bond Investment Is Not Money Laundering

Coordinating Minister for Economic Affairs Airlangga Hartarto has denied that the purchase of special debt instruments issued by Danantara, known as Merah Putih Bond, constitutes money laundering. The issue arose in public discourse because investors purchasing these bonds are considered exempt from taxation. “If we have an investment, it is not part of money laundering, so the instrument is not for money laundering,” Airlangga told reporters at his office on Wednesday (24/6/2026). He further stated that the new policy does not damage global trust in Indonesia as a member of the Financial Action Task Force (FATF), an international organisation combating money laundering. “We are still a member of FATF, and this new instrument is not a medium for money laundering practices,” he stressed. Therefore, Airlangga explained that the issuance of this new investment product by Danantara cannot be linked to money laundering. “Every new product uses mechanisms and transparency that are not related to money laundering or other financial crimes,” he said. Previously, Finance Minister Purbaya Yudhi Sadewa revealed that investors in the Patriot Bond do not have immunity as broad as a tax amnesty. Purbaya confirmed that tax protection only applies to the funds placed into the Patriot Bond and Merah Putih Bond. “Only the money that goes in, the money outside is not covered,” he stated when met at Tanjung Priok Port on Tuesday (23/6/2026). He dismissed the notion that the scheme for purchasing Patriot Bond and Merah Putih Bond is a form of tax amnesty. In a tax amnesty, all incoming funds are tax-free. “Tax amnesty means everything is free. This is not like that. Only the money placed into the instrument is safe. If they have a company, it will be examined as usual, but the funds placed in the instrument are protected. So, it is not like a tax amnesty,” Purbaya explained. The government is known to provide special legal and tax protection for investors purchasing Patriot Bond and Merah Putih Bond. This protection is stipulated in Article 50A of Law Number 4 of 2026, which revises Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK). The law states, “The state guarantees and protects the purchase of special debt instruments as referred to in paragraph (a) from general criminal prosecution, special criminal prosecution including tax crimes, and from civil lawsuits.” Furthermore, data and information regarding the purchase of Patriot Bond and Merah Putih Bond cannot be used as a basis for tax assessment or court evidence. This special treatment applies to transactions in the primary market. A subsequent clause also grants investors the authority to transfer or use the debt instruments as collateral. Investors in these debt instruments may also participate in the tax amnesty programme.