Purbaya Clarifies Investor Protection for Patriot Bonds, Asserts Assets and Businesses Remain Subject to Scrutiny
Minister of Finance Purbaya Yudhi Sadewa has provided clarification regarding legal protection for investors in Patriot Bonds and Obligasi Merah Putih, which have recently come under public scrutiny. He emphasised that the protection only applies to funds placed in these investment instruments, not to the assets or business activities of the investors.
The statement was made following various interpretations 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 Danantara.
According to Purbaya, the funds used to purchase Patriot Bonds will not be traced to their origin. However, this does not mean the fund owners receive legal immunity for other assets or businesses they own.
“The correct understanding is that the funds used to purchase Patriot Bonds will not be traced to their origin. However, if the owner has other businesses or ventures, those can still be examined,” Purbaya told reporters in Jakarta on Tuesday, 23 June 2026.
He explained that the protection outlined in Article 50A of the P2SK Law has a limited scope. The provision grants protection to funds placed in Patriot Bonds and Obligasi Merah Putih, covering general criminal charges, special criminal offences including tax-related ones, and civil lawsuits.
Nevertheless, this protection cannot be interpreted as an elimination of legal responsibility for investors’ business activities outside the funds placed in these instruments. According to Purbaya, if tax issues or other legal violations are found in a company owned by an investor, legal proceedings can still be carried out in accordance with applicable regulations.
“The funds entering the instrument are safe. But the company or business activities of the fund owner do not receive immunity if tax issues or other violations are found,” he stated.
Purbaya also dismissed comparisons equating the Patriot Bond scheme with the government’s previous tax amnesty programme.