Government Plans to Issue Panda Bonds in China

The government plans to issue Panda Bonds in China to strengthen the stability of the rupiah’s exchange rate through diversification of international financing sources. This was stated by Finance Minister Purbaya Yudhi Sadewa. “To strengthen the exchange rate, we will also issue Panda Bonds in China with lower interest rates so that we are not too dependent on the dollar anymore. So, our diversification will be even better in the future,” said Purbaya, quoted from Antara on Wednesday, 6 May 2026. Purbaya explained that this diversification step aims to reduce Indonesia’s dependence on the US dollar. The issuance of debt instruments in the Chinese market will also be beneficial because it offers more competitive interest rates for the government. This exchange rate strengthening strategy is the result of discussions in a limited meeting between President Prabowo Subianto and several ministers of the Red and White Cabinet and the Financial System Stability Committee (KSSK). The main focus of the meeting was to maintain the momentum of economic growth that is currently accelerating. In addition to strengthening the rupiah, the government reported the achievement of national economic growth that has surged to 5.61 per cent. This figure shows a significant increase compared to the previous period’s achievement of 5.39 per cent. “We discussed the economic growth figure with the president that we have indeed been able to reverse the direction of the economy. So, our economy is experiencing acceleration,” said Purbaya. To maintain this momentum in the second quarter of 2026, Purbaya continued, the government plans to announce additional stimulus for the economy in the near future. This stimulus is planned to be implemented starting from early June to encourage community economic activity.