What You Need to Understand About Patriot Bonds and Merah Putih Bonds: Benefits, Risks, and Controversies

Patriot Bond and Merah Putih Bond have suddenly drawn public attention following the introduction of Article 50A in Law Number 4 of 2026 concerning the Development and Strengthening of the Financial Sector (UU P2SK). This regulation provides special protection for purchasers of debt securities issued by the Investment Management Agency (BPI) Daya Anagata Nusantara, or Danantara.

On one hand, the government considers these instruments a new source of financing for national strategic projects and a means to strengthen the Indonesian economy. On the other hand, a number of academics, observers, and legal practitioners are concerned about the potential for moral hazard and the impression of legal immunity for fund owners.

So, what exactly are Patriot Bond and Merah Putih Bond?

What Is a Patriot Bond?

Patriot Bond was first introduced by Danantara in August 2025 through an official publication titled Danantara Indonesia Diaries – Patriot Bonds.

In the concept introduced by Danantara, Patriot Bond is not merely an investment instrument for seeking financial returns, but is also designed as a vehicle for national mutual cooperation to support Indonesia’s economic development.

Danantara describes Patriot Bond as an instrument that allows large capital owners to contribute to the national economic transformation by financing strategic projects.

Funds raised from the issuance of Patriot Bond are planned to be used to finance various priority sectors, including energy transition, clean energy development, strategic infrastructure, waste-to-energy management, and sustainable projects towards the Net Zero Emission 2060 target.

Danantara CEO Rosan Roeslani previously revealed that purchase commitments for Patriot Bond had reached the target of IDR 50 trillion. A portion of these funds will be used to finance waste-to-energy projects, which are part of the government’s sustainable development agenda.

Who Can Purchase Patriot Bond?

Unlike government bonds that can be purchased by the general public, Patriot Bond uses a private placement scheme, meaning this instrument is not sold openly on the capital market.

Its target buyers are national conglomerates, owners of large business groups, top-tier entrepreneurs, and investors with substantial capital capacity. Participation in purchasing Patriot Bond is voluntary.