Indonesia eyes June issuance of Panda Bonds

Jakarta (ANTARA) - Indonesia is targeting the issuance of yuan-denominated sovereign bonds, known as Panda Bonds, in June 2026 as part of its strategy to diversify State Budget financing sources.

During a press conference in Jakarta on Friday, Finance Minister Purbaya Yudhi Sadewa said that he would travel to China on June 16 to promote the planned bond issuance to investors.

He said he had received a report from the Finance Ministry's director general of financing and risk management regarding preparations for the issuance.

The Panda Bond issuance is expected to serve as one of the government's financing diversification strategies, ensuring that the State Budget does not rely excessively on any single source of funding.

According to him, the roadshow is part of the government's effort to expand its investor base and diversify financing sources through debt securities.

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After China, Purbaya will travel to the United Kingdom to meet investors and present Indonesia's economic fundamentals, which he said remain strong.

"To reassure them that we are implementing sound economic policies," he said.

Bank Indonesia (BI) has expressed support for the issuance of renminbi-denominated financial instruments, including Panda Bonds and Dim Sum Bonds, by the Indonesian government to deepen the domestic foreign exchange market.

Last month, BI Deputy Governor Thomas Djiwandono said Panda Bonds could provide an alternative investment vehicle for renminbi holdings while strengthening the Chinese currency's liquidity in Indonesia's domestic market.

He added that BI is also utilizing Bank Indonesia Rupiah Securities (SRBI) and supporting the availability of government securities in offshore markets as alternative instruments for placing rupiah liquidity abroad.

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Translator: Bayu Saputra, Kuntum Khaira

Editor: Anton Santoso

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