House Commission XI Chair Confident in Patriot Bond Investor Verification Process

Mukhamad Misbakhun, Chair of Commission XI of the Indonesian House of Representatives (DPR RI), is optimistic that the identity verification process for Patriot Bond and Merah Putih Bond investors through the Know Your Customer (KYC) mechanism is proceeding well. He made the statement in response to concerns regarding the use of these debt securities as a vehicle for money laundering, asserting that the funds used by purchasers are guaranteed safe, thus their origins need not be investigated. “We trust the KYC mechanism within Indonesia’s financial system, which is applied globally,” Misbakhun said during the ‘Mid-Year Economic Outlook 2026: The New Rules of Survival in Uncertain Times’ event in Jakarta on Friday. He noted that investors, particularly those purchasing bonds worth billions to trillions of rupiah, would certainly utilise financial service providers such as banks, securities companies, or asset management firms to complete the transactions. The KYC process, he continued, should have been conducted since the investor opened an account and became a client of these financial institutions. “The process exists in each sector, and it is time we trust each sector to carry out its functions according to its authority,” Misbakhun stated. He urged all parties to stop perceiving these bonds as tools for money laundering. He explained that the special treatment provided by the government for funds invested in Patriot Bonds and Merah Putih Bonds is specifically aimed at attracting more people to invest in Indonesia. This is necessary because Indonesian debt securities must compete with those of other countries to attract investors, particularly given the trend of fund owners investing in the United States, which has high benchmark interest rates. “This is why additional incentive values must be provided in this sector to attract investment,” Misbakhun said. Finance Minister Purbaya Yudhi Sadewa previously explained that the special treatment for Patriot Bond and Merah Putih Bond investors only applies to funds placed in these instruments, not to all assets or business activities of the fund owner. This statement responded to the insertion of Article 50A in Law Number 4 of 2026 concerning the Development and Strengthening of the Financial Sector (UU P2SK), which regulates legal protection for buyers of special debt securities issued by the Danantara Investment Management Agency. This guarantee includes protection from general criminal charges, special criminal charges including taxation offences, and civil lawsuits. Purbaya stressed that funds entering the Patriot Bond and Merah Putih Bond instruments will be deemed to originate from safe sources. However, the companies or business activities of the fund owners do not receive immunity if taxation issues or other violations are discovered.