RI eyes over US$1 billion from Panda Bond issuance as demand surges

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa announced plans to raise the issuance target for Panda Bonds to over US$1 billion, following strong enthusiasm from investors in the Chinese market.

The decision to expand the target will depend heavily on the final appetite of the Chinese buyers as the government monitors real-time financial developments.

"We will see what the market looks like. If demand is high, then we will increase it," Purbaya said during a media briefing here on Friday.

The minister explained that Indonesia's overall global bond issuance requirement for the year stands at approximately US$3 billion.

If Chinese market conditions remain favorable, the government intends to maximize the yuan-denominated instrument to cover a larger portion of its financing needs.

This growing optimism has prompted the government to push back its initial issuance timeline from early July to the end of July 2026.

Purbaya revealed that the slight delay was made at the request of several major Chinese investment managers and top-tier commercial banks, which required additional time to clear internal approval processes before purchasing the Indonesian sovereign debt.

"The Panda Bond was originally scheduled for early July, but apparently investor interest increased. Some large fund managers and banks there were late in finding out, so they asked us to postpone it slightly so they had time to submit their proposals to their investment committees," he noted.

The Finance Minister welcomed the requests, interpreting them as a positive signal of high foreign confidence in Indonesia's macroeconomic stability and financial instruments.

By adjusting the schedule, the government aims to maximize institutional participation and secure lower borrowing costs.

Beyond institutional buyers, Purbaya disclosed that several prominent financial institutions in China have expressed interest in participating more deeply.

A number of major banks have formally requested to serve as underwriters to help market and distribute the Indonesian debt securities across the Chinese mainland.

The updated target marks a significant increase from the baseline established during Purbaya's recent working visit to China from June 16–19, 2026, where the government had initially set a conservative debut target of US$1 billion.

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Translator: Bayu Saputra, Yashinta Difa

Editor: Azis Kurmala

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