Addin Anugrah Siwi, Jakarta – Finance Minister Purbaya Yudhi Sadewa dismissed allegations that Danantara's planned Patriot Bond and Merah Putih Bond could become vehicles for money laundering, arguing the financing instruments follow practices adopted by other countries and should not be viewed as extraordinary or unlawful.
The remarks came after the Danantara Monitor, a civil coalition, submitted a letter to the Financial Action Task Force (FATF), raising concerns over Article 50A of Indonesia's revised Financial Sector Development and Strengthening Law (P2SK), which governs the issuance of the bonds.
Asked about the criticism on Wednesday, Purbaya said similar instruments have long existed elsewhere, including in Singapore.
"One of the key players in the FATF, including its former president, is Singapore. They have a very strong role within the FATF," Purbaya said.
He rejected claims that the bonds could facilitate illicit financial activity, saying their primary purpose is to broaden public participation in financing national development.
"This is not about money laundering. Many countries implemented this long before Indonesia did. Just look at the country I mentioned earlier as one of the key players. So let's just see how it develops and move forward," he said.
Purbaya also suggested that concerns over illicit funds should instead focus on Indonesian assets held abroad.
"Do you know where the proceeds from corruption in Indonesia are kept? That should answer your question," he said.
When asked whether the controversy could affect Indonesia's standing as an FATF member, Purbaya said the issue falls under the authority of the Financial Transaction Reports and Analysis Center (PPATK).
"I don't know. I'll leave that to the PPATK, which understands the matter better. My job is to implement the president's policy," he said.
Purbaya added that the government would continue implementing the policy in line with national interests. "The world is not black and white. We just need to make sure Indonesia is not disadvantaged," he said.
The controversy stems from Article 50A of Law No. 4/2026, which grants legal protections to investors purchasing Patriot Bonds issued by sovereign wealth fund Danantara. The provision bars transaction data from being used as the basis for new tax assessments or as evidence in court, while Purbaya has also said the government will not scrutinize the origin of funds used to purchase the bonds.
Critics, including legal scholars and civil society groups, argue the article could create opportunities to launder illicit funds, conceal beneficial ownership, and hamper efforts by law enforcement agencies to trace criminal proceeds.
The government says the policy is intended to repatriate Indonesian capital held overseas and finance strategic national projects. It argues that the legal protections apply only to investments made through Patriot Bonds and do not grant investors blanket immunity from prosecution for unrelated criminal offenses.
Source: https://jakartaglobe.id/business/purbaya-rejects-money-laundering-claims-over-danantara-patriot-bon