Indonesia’s Danantara investment fund calls on tycoons to buy low-yield ‘patriot’ bonds: Sources
“The so-called patriot bonds are denominated in rupiah, have a coupon yield of 2 per cent and initially had a maturity period of more than 20 years. However, this was later negotiated to five- and seven-year tenors, a senior Danantara official told The Straits Times on Aug 25.”
“The bond issuance is aimed at helping to fund President Prabowo Subianto’s social and economic initiatives. These include energy transition, waste management and other high-impact projects, according to the senior Danantara official.”
“Since Mr Prabowo became president in 2024, his administration has embarked on many ambitious projects, including the 170 trillion rupiah free meals programme for students and pregnant women as well as plans to build one million affordable homes in urban areas for the lower-middle class.”
“Mr Pandu Sjahrir, Danantara’s chief investment officer, said in a media statement on Aug 26 that the patriot bonds are a ‘strategic financing instrument’ to ‘reinforce national financing independence’.”