{
    "success": true,
    "data": {
        "id": 1825818,
        "msgid": "purbaya-arranges-panda-bond-purchase-scheme-could-boost-forex-reserves-by-us-50-billion-1782471116",
        "date": "2026-06-26 16:38:31",
        "title": "Purbaya Arranges Panda Bond Purchase Scheme, Could Boost Forex Reserves by US$50 Billion",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Finance",
        "summary": "Finance Minister Purbaya Yudhi Sadewa plans to utilise a Local Currency Transaction scheme with Chinese investors for the purchase of renminbi-denominated Panda Bonds. The initiative aims to reduce Indonesia's reliance on the US dollar and ease pressure on the rupiah. The government also views the bond issuance as a diversification strategy to mitigate exchange rate risks to the state budget.",
        "content": "<p>Finance Minister Purbaya Yudhi Sadewa plans to use a Local Currency\nTransaction (LCT) scheme with Chinese investors for the purchase of\nrenminbi-denominated government bonds, known as Panda Bonds. The plan is\nintended to further underscore the government\u2019s efforts to reduce\ndependence on the United States dollar and ease pressure on the rupiah\nexchange rate. \u201cI have a plan: once the Panda Bond is sold, I will\nactivate or use the Local Currency Transaction (LCT) route, where they\npay in renminbi and then, through a certain mechanism between their\ncentral bank and our central bank, I will directly receive rupiah,\u201d he\nstated during a media briefing at the Ministry of Finance office in\nJakarta on Friday (26\/6\/2026). \u201cThus, our dependence on the dollar will\nbe lessened and it will reduce pressure on the rupiah,\u201d he continued.\nPurbaya explained that through this transaction scheme, Indonesia\u2019s\nforeign exchange reserves could effectively increase by up to US$50\nbillion, due to an agreement between Bank Indonesia and the People\u2019s\nBank of China (PBoC) for transactions without needing conversion to US\ndollars. \u201cOur central bank\u2019s agreement is around US$50 billion. If that\nis used properly and quickly, it will appear as if our foreign exchange\nreserves have risen by US$50 billion, although de jure it is not\nrecorded,\u201d Purbaya revealed. With the diminishing reliance on\ntransactions without the US dollar, he confirmed that this would\nautomatically help strengthen the stability of the rupiah exchange rate.\n\u201cBut I can say our foreign exchange reserves have increased like that,\nbecause we can access them easily, meaning our dependence on the dollar\ncan be further suppressed, and the rupiah will be more stable,\u201d he\nasserted. Acting Director General of Financial Sector Stability and\nDevelopment Herman Saheruddin previously stated that one reason for\nissuing Panda Bonds is as a form of financing diversification. \u201cThe\nreason for issuing Panda Bonds is to seek alternative sources of\nfinancing, or diversification. With this diversification, the hope is\nthat the risk to our state budget from financing sourced from exchange\nrate risk can be diversified, and we can reduce the impact of dependence\non the US dollar,\u201d Herman said when met by reporters at his office on\nThursday (26\/6\/2026). With alternative sources of financing, he noted,\nthe impact of significant dollar fluctuations on the state budget would\nnot be as large as in previous years, such as 1998. \u201cOne of these\ndiversification efforts involves entering countries where there is\ndemand, those that have money and appreciate Indonesia\u2019s reputation and\nfundamentals, one of which is China,\u201d he continued. Herman views China\nas one of the countries that can assist with financing diversification,\nas the pricing of these bonds still reflects Indonesia\u2019s fundamentals.\n\u201cChina is one of several countries interested in providing financing to\nIndonesia by purchasing our bonds at a pricing that makes sense, meaning\nit is not far from our fundamentals,\u201d Herman said. Furthermore, the\nreason for issuing these bonds is to enable currency diversification,\nthereby minimising the impact of a strengthening US dollar. \u201cNow we are\ndiversifying. If we are too dependent on the US dollar, I think it will\nbecome less stable, and the state budget will continue to run a deficit\nif we only rely on the US dollar,\u201d he explained.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/purbaya-arranges-panda-bond-purchase-scheme-could-boost-forex-reserves-by-us-50-billion-1782471116",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}