The country’s investment management agency BPI Danantara, or Danantara Indonesia, is preparing to launch Patriot Bonds up to US$3.1 billion (Rp50 trillion), which will be allocated to several national strategic projects, including large-scale waste management.

A report by Katadata reveals that the bonds issuance will be managed by Mandiri Sekuritas and offered in two series − five-year and 10-year maturities − each valued at Rp25 trillion. The bonds sale is scheduled for October 1, 2025, with a fixed coupon rate of 2 percent, significantly below the Indonesian Central Bank’s (BI) benchmark interest rate of 5.8 percent and the 6.1 percent yield of comparable government securities.

Senior economist from Paramadina University, Wijayanto Samirin, said the Rp50 trillion fundraising effort could provide some relief, though it is still far from sufficient to meet urgent national financing needs. He suggested that the funds be directed to restructuring state-owned enterprises (SOEs), including construction firms, pharmaceutical companies, and national flag carrier Garuda Indonesia.

However, Wijayanto warned that the 2 percent return is below inflation, meaning investors would face negative real yields. “Purchasing this bond will rely more on patriotic spirit rather than financial logic,” he said on Tuesday, August 26, 2025.

He also underlined four conditions: efficient and urgent use of funds, no coercion on buyers, avoiding repeated issuance that could raise business costs, and stronger government commitment to improve legal certainty and eliminate predatory practices.

Meanwhile, Danantara Chief Investment Officer Pandu Sjahrir emphasized that Patriot Bonds are a strategic financing instrument widely used in countries such as Japan and the United States.

He said the program is based on voluntary participation and shared responsibility, designed to provide stable medium- to long-term funding while giving businesses access to safe, impactful investments.

“Every financing initiative is directed toward long-term economic transformation and strengthening the role of businesses in development,” Pandu said as quoted in a statement on Tuesday, August 26, 2025.