Indonesia aims to issue the yuan-denominated global bonds, known as Panda Bond, to be realized in June 2026, Finance Minister Purbaya Yudhi Sadewa said on Wednesday.
He stated that he had received a report from Suminto, Director General of Budget Financing and Risk Management at the Ministry of Finance, and plans to travel to China soon.
“Possibly next month,” Purbaya told reporters in Jakarta, referring to the potential timing of the issuance.
He explained that issuing Panda Bond is part of Indonesia’s strategy to diversify financing and strengthen the State Budget (APBN), ensuring it does not rely on a single funding source.
As of March 31, 2026, Indonesia had realized Rp257.4 trillion ($14.69 billion) in budget financing, comprising Rp258.7 trillion in debt issuance and Rp1.3 trillion in non-debt financing.
“We continue to diversify so we’re not dependent on financing from the United States or Western countries,” he added.
Purbaya noted that China has ample liquidity and a large capacity financial market, which is expected to absorb Indonesian government debt instruments, with yields estimated in the range of 2.3 percent to 2.5 percent.
He added that Chinese investors show strong confidence in Indonesia’s economic fundamentals, making them less sensitive to credit ratings.
He also revealed that he had met with the Industrial and Commercial Bank of China (ICBC), which expressed readiness to participate in the Panda Bond issuance.
“We have been in contact with ICBC, and they are ready to proceed,” he said.
As a reciprocal step, Indonesia is open to allowing China to issue bonds in its domestic market, Purbaya added.
This proposal emerged during bilateral discussions between Finance Minister Purbaya and Chinese Finance Minister Lan Fo’an on the sidelines of the IMF-World Bank Spring Meetings held on April 13–17 in Washington, D.C., United States.
According to the minister, this move could give Indonesian investors access to Chinese debt instruments while deepening financial ties between the two countries.
Editor : Vicki Febrianto
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