Celios Curigai Hidden Cost In Patriot Bond Scheme

Bonds (Photo: dock. Antara)

JAKARTA - Director of the Digital Economy Center of Economic and Law Studies (Celios) Nailul Huda, assessed that Patriot Bond is not an attractive investment instrument for retail investors or high profit seekers.

He said that with a yield rate of around 2 percent per year, Patriot Bond is more aimed at big entrepreneurs and is carried out through a private placement scheme.

According to him, the interest rate is still lower than the annual inflation rate which is in the range of 2.5 percent, so that in terms of business, this investment is considered unfavorable.

"With a return interest of 2 percent per year, inflation is consumed by approximately 2.5 percent. Business is not profitable. For business people, it will be more profitable if investment in SBN or bank deposits," he told VOI, Friday, October 3.

He also expressed suspicions about the hidden cost behind the low yield level.

"No free launch in every government program. Because this is a private placement, this sale will not be opened to the public. Entrepreneurs are asked by Danantara to become investors. Most of them are entrepreneurs," he explained.

Huda added that there is potential that Danantara projects and other government projects will be given to these investors. If not, at least their businesses will be secured until their bond coupons are due, which ranges from five to seven years.

Regarding the use of Patriot Bond funds, Huda also supports if these funds are really used for sectors that have economic and environmental benefits, such as the Waste to Energy (WTE) project.

"We are waiting for the implementation of what it looks like because we also heard Danantara's investment plan for the coal gasification sector. So we hope that this government will not just turn around, but also implement it," he said.

According to him, investment in the clean energy sector such as WTE can encourage economic growth in the short, medium and long term. In addition to creating economic effects, this sector also contributes to preserving the environment.

"So the government needs to immediately determine for investment in the clean energy sector. Not just saying in the media just to provide positive news to the Danantara. But can implement what has been planned," he explained.