What Are Patriot Bonds? This Is Understanding And Large Interest

YOGYAKARTA Recently viral list of 46 conglomerate buyers of Patriot Bond published by the government through Danantara. In the list, several Indonesian conglomerates are said to be investors. Apart from the news, did you know what Patriot Bonds is?

In simple terms, Patriot Bond can be understood as a debt securities (bonds) issued by the state, in this case Danantara Indonesia. Patriot's debt securities are actually generally issued by other countries. Apart from Indonesia, countries that also issue Patriot Bond are Japan and the United States (US).

In Indonesia, the issuance of Patriot Bond is carried out so that the community can invest as well as support the development program launched by the government. The state as a publisher will get fresh, stable funds within a certain period of time. In return, investors who buy the debt securities will get interest (coupons) regularly.

It should be noted that the interest or yield obtained by the bond holder is quite low. Patriot Bond interest is only 2%. In comparison, the bonds of the Indonesian government with a five-year tenor amounted to 5.9%, while the seven-year tenor was 6.16%. It is said that this low yield is the reason why the word patriot is pinned.

In addition, these patriot bonds are not offered publicly, but are offered through a private placement scheme. Not only that, participation is also voluntary so that investors will not be forced to buy the debt securities.

Related to this, Deputy Chairperson of the Indonesian Employers' Association, Sanny Iskandar, explained that despite the low interest rate, investors actually considered non-financial profits. Patriot Bond is said to be able to have a positive impact on the environment when the funds are used by the government for environmental projects.

Circulating on social media as many as 46 names of Indonesian conglomerates are said to have participated in buying Patriot Bond Danantara Indonesia. Some of the names listed include Anthoni Salim, Prajogo Pangestu, Sugianto Kusuma, Franky Widjaja, Boy Thohir and Edwin Soeryadjaya, and Low Tuck Kwong.

In addition, there are also Tomoy Winata, Hilmi Panigoro, James Riady, Sukanto Tanoto, Eddy Sariaatmadja, Gunawan Lim, to Sjamsul Nursalim.

Apart from names, it is also stated the value of the investment commitment disbursed by each name. Based on information circulating on social media, the largest value of the bond buyer is IDR 3 trillion.

Meanwhile, the lowest value for Patriot Bond buyers was Rp. 0.1 trillion which was recorded to have been issued by Marcel Menaro and Rp. 0.05 trillion which was recorded as belonging to Handojo S Muljadi. There is no further information regarding the veracity of this information.

In response to this, MD Global Relations and Governance Mohamad Al-Arief said that the information circulating was not official information.

"Regarding the information circulating regarding Patriot Bonds. We need to emphasize that this information is not official information and so far no announcement has been issued," said Mohamad Al-Arief in a written statement, Wednesday (1/10).

That's information regarding what Patriot Bonds is. Visit VOI.id to get more interesting information.