Finance Ministry Confirms Panda Bond Issuance on Schedule
Acting Director General of Financial Sector Stability and Development at the Ministry of Finance, Herman Saheruddin, has confirmed that the plan to issue Panda Bonds remains on schedule, targeting the end of June or early July 2026. The confirmation was made in Jakarta on Thursday (25/6), as the licensing process is still underway.
Herman stated that the government continues to process the stages for issuing the financing instrument. During Finance Minister Purbaya Yudhi Sadewa’s visit to China last week, discussions on accelerating the permit process were held with the Governor of the People’s Bank of China (PBOC), Pan Gongsheng.
“(The Panda Bond issuance) is on schedule. We met recently, because the permit must also be submitted to the PBOC,” Herman said, as quoted by Antara.
According to Herman, the PBOC welcomed the Indonesian government’s plan to issue Panda Bonds. The Chinese central bank is reportedly ready to help expedite the necessary processes. However, several administrative stages must still be completed before the issuance can proceed.
Finance Minister Purbaya previously stated that the government is targeting a Panda Bond issuance worth 1 billion US dollars. This value may be adjusted depending on market conditions at the time of issuance.
“Initially, the target is around US$1 billion, but we will see how the market is. If the market can absorb more, we will increase it, depending on market conditions,” Purbaya said.
This statement was made following a series of meetings with China’s Finance Minister Lan Fo’an, the PBOC, the Asian Infrastructure Investment Bank (AIIB), and several investors during an official visit to China from 16 to 19 June 2026.
The government is preparing the Panda Bond issuance as part of a strategy to diversify international financing sources. The instrument is also intended to strengthen the stability of the rupiah exchange rate.
A Panda Bond is a debt security issued by a government, multilateral institution, or foreign company in China’s domestic bond market, denominated in yuan or renminbi. Through this scheme, the bonds can be marketed directly to investors in mainland China.
“In the meeting with the PBOC, we were asked to expedite the submission of permit documents. The underwriters have not yet submitted them, so the PBOC requested that they be submitted immediately for processing. Their support for this plan is very positive,” Purbaya said.