Indonesia Issues US$3 Billion Patriot Bonds for Strategic National Developments

• Danantara secures US$3 billion Patriot Bonds to advance strategic national infrastructure

• Proceeds allocated to renewable waste-to-energy projects supporting Indonesia’s sustainability

By Kenzie Aryasatya, Fayza Nawra Avanitanya, Muthia Noor Safitri, Imam Fakhri Prayogo Harianto 

October 10, 2025 at 16:30 GMT+7

Danantara Indonesia, the sovereign wealth fund, has issued US$3 billion (Rp50 trillion) in Patriot Bonds to finance Indonesia’s strategic national projects under the government’s long-term infrastructure roadmap. The offering was divided into two series, each valued at Rp25 trillion, with maturities of five and ten years, respectively.

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Carrying a 2% fixed coupon rate, the bonds are priced significantly below Bank Indonesia’s 5.8% benchmark rate and the 6.1% yield on comparable government bonds, signaling investor willingness to accept below-market returns. 

Senior economist Wijayanto Samirin noted that the unusually low yield highlights the patriotic motive behind investor participation, as buyers appear to prioritize national contribution over financial gain. The issuance reflects growing confidence in Indonesia’s fiscal management and aligns with President Prabowo Subianto’s focus on mobilizing domestic funding for nation-building efforts.

The headquarters of Danantara Indonesia. | Source: KATADATA

The fully subscribed issuance will primarily fund the development of waste-to-energy projects across Indonesia, marking a critical step toward sustainable infrastructure and circular economy initiatives. Danantara CEO Rosan Roeslani confirmed that the Rp50 trillion fundraising target was successfully achieved through private placement, underscoring strong domestic investor demand. 

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The initial phase will focus on constructing waste-to-energy facilities in 33 cities, starting in Jakarta before expanding to Bali and other major urban areas. Each plant is designed to process around 1,000 tons of waste daily, generating approximately 15 megawatts of electricity, enough to power up to 20,000 households. 

State utility PLN will serve as the off-taker, purchasing the electricity at US$0.20 per kilowatt-hour under long-term agreements. The project aims to reduce landfill reliance, cut carbon emissions, and support Indonesia’s transition toward renewable energy solutions within its national sustainability agenda.

Workers build bridge and transportation facilities as part of Indonesia’s strategic national projects. | Source: ASEAN Infrastructure New

Prominent Indonesian business figures have reportedly participated in the bond purchase, reflecting strong private-sector alignment with national development goals. According to reports, notable investors include Anthoni Salim of Salim Group, Prajogo Pangestu of Barito Pacific, Franky Widjaja of Sinar Mas, Garibaldi “Boy” Thohir of Adaro Energy, and Low Tuck Kwong of Bayan Resources. 

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While the list of investors has not been officially verified, Danantara emphasized that participation in the program remains voluntary and grounded in a spirit of patriotism. Market observers view the initiative as a new model for mobilizing domestic capital toward public-interest projects, bridging private wealth with state-led infrastructure development. 

The Patriot Bond’s success underscores Indonesia’s strengthening financial ecosystem and its capacity to fund strategic, long-horizon projects from within its own economic base.

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Sources:

CNN

Indonesia Business Post

Jakarta Globe