Government Postpones Panda Bond Issuance

Finance Minister Purbaya Yudhi Sadewa announced that the issuance of the Panda Bond has been postponed until the end of July 2026. The bond was originally scheduled for release in early July. The minister explained that several banks and fund managers in China were late in learning about the Indonesian government’s offering. “I think this is actually good, it means there is significant interest. So I am postponing it until the end of July,” he said during a press conference at the Ministry of Finance office in Jakarta on Friday, 26 June 2026. Purbaya stated that prospective investors requested a delay to allow time to submit proposals to their respective investment committees. The request was granted in order to attract a broader investor base. During a recent visit to China, Purbaya met with the governor of the People’s Bank of China and the president of the Asian Infrastructure Investment Bank. He claimed many parties expressed interest in investing large amounts. “Some of them will also act as underwriters. I will permit them to be underwriters so that more parties are selling our bonds there,” he said. Purbaya acknowledged the approach might seem unconventional but described it as strategic for diversifying the country’s development funding sources. He noted that funding currencies would not be dominated solely by the US dollar, with the Chinese renminbi also playing a role. When the Panda Bond is sold, Purbaya plans to utilise a Local Currency Transaction mechanism with the People’s Bank of China and Bank Indonesia, allowing the renminbi proceeds to be directly converted into rupiah. “This will reduce our dependence on the dollar and ease pressure on the rupiah,” he said. The Panda Bond is offered to investors in China and sold in renminbi, with the proceeds intended for various domestic development projects.