JAKARTA. The Indonesian government has officially revised the Financial Sector Development and Strengthening (PPSK) Law by issuing Law No. 4 of 2026, amending Law No. 4 of 2023.
One of the key amendments introduces a new provision authorizing the Daya Anagata Nusantara Investment Management Agency (Danantara) to issue two types of debt securities: regular debt securities and special debt securities, including Patriot Bonds and Merah Putih Bonds.
A notable aspect of the new provisions concerns the legal treatment of investors purchasing these instruments.
Article 50A paragraph (5) stipulates that the government will guarantee and protect purchases of both Patriot Bonds and Merah Putih Bonds from all forms of legal claims, whether criminal or civil.
More specifically, the law states that purchasers of Patriot Bonds and Merah Putih Bonds are exempt from prosecution under general criminal law, special criminal law, and tax criminal law.
Facility for Tax Amnesty Participants
In addition, any data and information arising from transactions involving these bonds cannot be used as the basis for tax assessments and cannot be admitted as legal evidence in court proceedings.
These protections apply to transactions conducted in the primary market. Investors are also permitted to transfer or pledge Patriot Bonds and Merah Putih Bonds as collateral.
The law further provides that Patriot Bonds and Merah Putih Bonds may serve as investment vehicles for funds declared under Indonesia's Tax Amnesty Program and the Voluntary Disclosure Program (the second tax amnesty program).
Strengthening the Financial Sector
In its explanatory memorandum, the government states that Law No. 4 of 2026 was enacted to further develop and strengthen Indonesia's financial sector.
Accordingly, the government considers it necessary to restructure the institutional framework of the financial sector through this legislation, which came into effect on 17 June 2026. (KEN)
