Danantara Unveils Patriot Bond, a 'Safe and Patriotic' Investment Option

Jakarta: Indonesia’s sovereign wealth manager, Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara), is reportedly preparing to launch a new financing instrument called the Patriot Bond.

Danantara Indonesia’s Chief Investment Officer, Pandu Sjahrir, said the issuance of the Patriot Bond aligns with the company’s mandate as a state investment manager, operating under the principles of prudence, transparency, and good governance.

He noted that the Patriot Bond is not an entirely new concept, as similar instruments have been introduced in other countries, including Japan and the United States, as a means of strengthening national financing.

“Through this scheme, the state can secure a sustainable funding source, while businesses gain access to a safe investment instrument that also adds value to the economy,” Pandu said in a statement on Wednesday, August 27, 2025.

According to him, the core principle of the Patriot Bond is voluntary participation and shared responsibility. “This scheme allows national business groups to contribute to intergenerational development while ensuring sustainability and social welfare,” he added.

Business leader Franky Widjaja also welcomed the initiative, saying that the Patriot Bond would provide dual benefits for both the private sector and national development.

What Is the Patriot Bond?

The Patriot Bond is a type of government bond designed to give the public an opportunity to invest while directly supporting national development. Like conventional bonds, it allows investors to purchase debt securities with a fixed maturity period and receive regular interest payments (coupons).

However, details regarding the bond’s tenor, interest rate, and purchase mechanisms have not yet been disclosed. Danantara said only that the product is expected to serve as a safe and “patriotic” investment alternative, with proceeds directed toward strategic national projects.

Why “Patriot” Bond?

The name “Patriot” was chosen to emphasize that the instrument is not merely a financial product but also a form of civic participation in nation-building. By purchasing Patriot Bonds, investors are seen as helping to strengthen Indonesia’s financial independence.

The Patriot Bond is currently in the preparation and regulatory review stage, with the Financial Services Authority (OJK) and other stakeholders expected to be involved to ensure compliance with Indonesia’s capital market rules.

The official launch is expected to provide more clarity on the instrument’s mechanics, risks, and potential returns for investors.