Indonesia Danantara's Patriot Bonds May Overtake Bank Deposits
Reporter
August 27, 2025 | 05:30 pm
TEMPO.CO, Jakarta - The Executive Director of the Center of Economic and Law Studies (Celios), Bhima Yudhistira Adhinegara, commented on the release of Patriot Bonds by Indonesia's Danantara Sovereign Wealth Fund. Patriot Bonds are a type of strategic financing instrument in the form of bonds. Danantara stated that the instrument is commonly used to strengthen national financing independence.
Meanwhile, Bhima believes that the presence of Patriot Bonds will attract banking deposits from conglomerates, who will turn to these debt instruments. "Because it is packaged in a nationalist form that forces conglomerates to buy Patriot Bonds," he said in a written statement on Monday, August 27, 2025.
On the other hand, Bhima also cautioned about the risk of liquidity pressure on banks due to the crowding-out effect of Danantara, which will disrupt the distribution of bank credit. This condition could even delay the transmission of the Bank Indonesia reference interest rate reduction to bank loan interest rates. "Existing banks are already competing for funds with the government's need to issue State Securities. In addition, there are Patriot Bonds targeted at domestic buyers," said Bhima.
He also pointed out that the presence of Patriot Bonds will encourage conglomerates in the country to invest in this type of debt instrument because it makes them feel protected. This is not due to the attractiveness of Danantara offering projects with competitive results.
"Conglomerates that buy Patriot Bonds are actually like buying insurance because they are considered to have helped Danantara. The purchase of Patriot Bonds could be a way for certain entrepreneurs to get closer and receive protection from the government," said Bhima.
Danantara's Chief Investment Officer, Pandu Sjahrir, previously emphasized that Patriot Bonds can strengthen the role of businesses in development. He noted that advanced countries like Japan and the United States commonly use similar bonds to strengthen their national financial independence.
According to Pandu, through Patriot Bonds, the country will obtain stable, medium- to long-term sources of funding. In the meantime, businesses will have access to safe investment instruments that benefit the national economy. "The basic principle of Patriot Bonds is voluntary participation and shared responsibility," he said in a written statement.
He believes that this bond scheme can create opportunities for national business groups to contribute to cross-generational development agendas, while also ensuring the sustainability and welfare of the community.
Editor's Choice: Why Indonesia's Danantara Introduced Patriot Bonds
Click here to get the latest news updates from Tempo on Google News
