Purbaya Promises Incentive Bonanza for Merah Putih Bond

Finance Minister Purbaya Yudhi Sadewa has stated there is no scheme obliging Indonesian citizens with certain criteria to purchase Merah Putih Bond debt securities. According to him, the government is instead preparing special incentives to encourage more prospective investors to buy these bonds. “There is no obligation, but incentives will be given so it becomes attractive for people who have money, something like that,” said Purbaya when confirmed by journalists at the Parliament Complex, Jakarta, Thursday (4/6). The Merah Putih Bond is a special bond to be issued by the Danantara Investment Management Agency (BPI), along with the Patriot Bond. The issuance is one of the amendment points in the revision of the Law on Financial Sector Development and Strengthening (P2SK). “In order to mobilise capital to drive the national economy amidst high global uncertainty, this bill stipulates that BPI Danantara may issue special debt securities, including Patriot Bond and Merah Putih Bond,” said the Finance Minister during a Working Meeting with Commission XI of the DPR RI in Jakarta, Wednesday (3/6). Purbaya assured that the issuance of special debt securities will be carried out by establishing risk management and control policy strategies managed professionally, accountably, and based on sound business considerations. Following the announcement, rumours circulated that Indonesian citizens with Annual Tax Returns showing asset values above Rp30 billion would be obliged to buy Merah Putih Bond, which the state treasurer denied. “As far as I know, the President never said it was mandatory,” he stated. The DPR RI Plenary Session approved the Bill on the Amendment to the Financial Sector Development and Strengthening Law (P2SK) to be enacted into law. The ratification of this P2SK Law revision is also part of efforts to strengthen coordination among financial sector authorities in maintaining national financial system stability. More adaptive regulations are deemed important for facing financial market dynamics while enhancing the competitiveness of Indonesia’s financial sector at regional and global levels.