Published on January 19, 2026, by Bloomberg
By Faris Mokhtar and Harry Suhartono
Danantara, Indonesia’s new sovereign wealth fund, plans to raise 20 trillion rupiah ($1.2 billion) in the first half via a fresh round of so-called patriot bonds, according to people familiar with the matter.
The fundraising would be the second such capital grab after a similar bond sale late last year. The notes’ coupon is expected to be less than market rates, the people said, requesting not to be named because the information is private. Discussions are ongoing and terms may change, they added.
During the previous round, Danantara issued five- and seven-year bonds with a coupon of around 2%. Seven-year Indonesia government bonds are currently yielding about 6.2%. Although the first round initially targeted $3.1 billion, ultimately $3.6 billion was raised after some additional notes were sold, the people said.
Representatives for Danantara didn’t immediately respond to a request for comment.
This latest bond sale will mainly target tycoons in the palm oil sector as well as business elites who weren’t part of the first tranche, the people familiar said. Selling patriot bonds to raise money was part of Danantara’s presentation to President Prabowo Subianto earlier this month. The presentation more broadly was to outline the sovereign wealth fund’s agenda, one year into its existence, for 2026.
The first round of patriot bonds garnered contributions from Indonesia’s richest families, including tycoons such as Franky Widjaja, who helms the Sinar Mas Group conglomerate that has operations in palm oil and property.
Danantara is seeking additional capital as it prepares to step up both domestic and international investments. The fund, seen by Prabowo as a key vehicle to drive his economic growth ambitions, has thus far collected an estimated $5 billion in dividends from state-owned enterprises that have been shifted under its supervision.
Danantara also previously said it’s won approval for a $1 billion unsecured syndicated credit facility from overseas banks. Collaboration pledges have also come in from a few foreign lenders, including Japan Bank for International Cooperation.
Tapping tycoons for a second round of patriot bonds is likely to add to the anxiety Indonesia’s wealthy are feeling, having already been unnerved by the administration’s crackdown on the affluent.
Some of the country’s wealthiest individuals and big businesses are being pressured to pay extra tax to boost government coffers amid an unusually deep revenue shortfall, other people familiar with the matter said last month. Prabowo also recently said his government plans to reclaim millions more hectares of land on top of the some 4 million already seized from large domestic companies.
Patriot bonds are seen as another of Prabowo’s attempts to lean on rich individuals to help his nation building efforts and support his welfare policies, which range from free lunches for school children to low-cost housing. Indonesia is home to some of the richest men and women in Southeast Asia, with the 10 wealthiest people having a combined net worth of more than $180 billion.