Celios Highlights Investor Immunity Provisions in Patriot Bond and Merah Putih Bond

Celios Economic Director Nailul Huda (right). (Photo: Theresia Agatha/VOI)

JAKARTA - The government has finally issued a copy of the Financial Sector Development and Strengthening Law (P2SK) as a result of the revision that was passed on June 4, 2026.

However, the document has only been circulating for almost three weeks after its approval, so it is considered to limit the public space to conduct a thorough study of the substance of the rules contained therein.

One of the provisions that has been in the spotlight is contained in Section Eight regarding Special Financial Instruments, especially Article 50A which regulates the issuance of special debt instruments in the form of Patriot Bonds and Red and White Bonds.

The provision has drawn criticism as it is considered to have the potential to create legal and governance issues.

In addition, this article is full of the interests of political elites and financial criminals because it provides immunity for those who commit money laundering and other financial crimes.

Celios Economic Director Nailul Huda assessed that the emergence of the instrument was inseparable from the increasing need for development funding in the midst of government fiscal space constraints.

"The government is in need of large funds for development financing that can no longer use the state budget. Development was eventually handed over to Danantara, but like the government, they are also running out of liquidity. Therefore, Danantara issued debt instruments ranging from Patriot Bonds and Red and White Bonds. However, to ensure that someone buys the debt instruments, the government guarantees that the funds are immune from the law," he said in his statement, Monday, June 22.

He also highlighted the state's provisions that provide protection to buyers of special debt instruments from general criminal prosecution, tax prosecution, to civil lawsuits.

According to him, this rule has the potential to create the perception that funds placed in the instrument cannot be used as a basis for tracing suspected financial crimes.

"Perpetrators of corruption, to cross-border money laundering that commit financial crimes can use this instrument to launder their money, enjoy the interest on their investment paid by the people's tax through SOEs. This law is in line with the latest SOE Law which provides immunity to SOE employees including Danantara from criminal liability for state financial losses," he explained.

Meanwhile, Celios Bhima Yudhistira's Executive Director, added that the reputational risk from the immunity of buyers of special debt securities and Danantara also impacts the image of the Indonesian government.

According to him, the provision of too broad legal protection to special debt securities investors has the potential to raise questions from the international investor community regarding Indonesia's commitment to the principles of governance, transparency, and anti-money laundering.

"Instead of improving the rule of law, the strict rules of the game, especially anti-corruption and cross-border money laundering, the government is revising the P2SK Law regulation to facilitate extra-ordinary crime in the form of special debt letters. They can be at risk of reputation," he said.

He emphasized that the concept of investor protection that has been known in the state debt instrument is different from the provisions contained in the revision of the P2SK Law, namely in the State Debt Law (SUN) which is the basis for the issuance of Indonesian Retail Bonds (ORI), investor protection is basically in the form of a state guarantee for the principal and interest payments of debt instruments.

"So the special debt letter rule that is immune is indeed the first time it has been released in the revision of the P2SK Law 2026." he added.