The Danantara Investment Management Agency (BPI Danantara) is set to issue a new debt instrument called the Patriot Bond. This special bond is specifically aimed at attracting Indonesia's top tycoons as primary buyers.

Singapore-based international media outlet The Straits Times highlighted the move in an article titled "Indonesia's Danantara investment fund calls on tycoons to buy low-yield 'patriot' bonds" published on Tuesday, August 26, 2025.

According to the report, several major Indonesian conglomerates have expressed their willingness to purchase the bonds, with a total fundraising target of Rp50 trillion. This marks Danantara's first bond issuance since its establishment in February 2025.

The Patriot Bond, denominated in rupiah, will be issued in two tranches—each valued at Rp25 trillion—starting October 1. The bonds will carry maturities of five and seven years, with a coupon rate of just 2 percent, far below Indonesia's 5-year (5.9%) and 7-year (6.16%) government bond yields.

“The return on these bonds is set at a level favorable to the issuer. Otherwise, it wouldn’t be called a ‘patriot’ bond,” a senior Danantara official told The Straits Times.

The Singaporean outlet further noted that the name “patriot” implies a sense of national pride and loyalty among investors who support the initiative.

The report also mentioned that the Indonesian government met with several tycoons on August 23 to discuss the bond scheme. High-profile figures such as Anthoni Salim’s Salim Group and the Nursalim family were reportedly among those briefed directly on the instrument.

The Straits Times stated that participating tycoons hold significant stakes in industries including mining, palm oil, food and beverage, and real estate.

Some are said to have agreed to invest between Rp2 trillion and Rp3 trillion each. However, Thomas Tjhie, a close aide to Anthoni Salim, claimed to have no official information regarding the Patriot Bond when contacted for confirmation.

The bond is being positioned as a strategic tool to finance key government projects, ranging from energy transition and waste management to the development of social infrastructure.

Since taking office in 2024, President Prabowo has rolled out ambitious programs, including a Rp170 trillion free meal initiative for students and expectant mothers, as well as plans to build one million affordable homes.

Danantara’s launch in February 2025 marked a major pillar in achieving the administration’s first-term economic growth target of 8 percent. As a state-owned holding company reporting directly to the president, Danantara currently manages assets exceeding US$1 trillion (approximately Rp1,600 trillion) and oversees 889 strategic state-owned enterprises (SOEs).