Patriot Bond and Merah Putih Bond to Strengthen Development Funding

The planned issuance of Patriot Bond and Merah Putih Bond by Danantara Indonesia should be viewed proportionally as instruments to strengthen national development financing, according to a public policy analyst. Economist and public policy observer Feiral Rizky Batubara stressed that the primary objective is to mobilise incoming capital domestically. According to Feiral, the instruments are designed to increase investment participation, deepen the domestic financial market, and support the funding of national strategic projects. “The essence is how to move domestic capital and attract funds into the Indonesian financial system. The goal is for these funds to be managed into credible investment instruments while supporting the national development and economic transformation agenda,” Feiral said on Friday, 26 June 2026. Responding to criticism, Feiral asserted that the Patriot Bond and Merah Putih Bond cannot be equated with the tax amnesty programme. He explained that both have vastly different objectives, mechanisms, and characteristics. “Tax amnesty is a policy related to asset disclosure and the settlement of tax obligations under specific provisions. Meanwhile, the Patriot Bond is an investment instrument aimed at increasing public capital participation in funding strategic projects and programmes. So the context is different,” he stated. Some parties had voiced concerns that the issuance of these bonds could create negative perceptions among global investors, posing a reputational risk to Danantara and the national financial market. However, Feiral believes such concerns can be addressed through the implementation of strong governance and transparency in the programme’s execution. He argued that Danantara’s credibility as a state investment institution will be largely determined by the quality of governance applied to every financing instrument it issues. He therefore encouraged the government to continue comprehensive public outreach so that the objectives, mechanisms, and benefits of the Patriot Bond and Merah Putih Bond are fully understood. “In this context, information transparency will be a crucial factor in addressing public doubt while strengthening trust in these new investment instruments,” he concluded.