Government to Issue Panda Bond Tomorrow, Targets USD 1 Billion

Finance Minister Purbaya Yudhi Sadewa said the Indonesian government will issue debt securities on China’s capital market, known as Panda Bonds, having secured an AAA rating from Lianhe Credit Rating, a respected rating agency in the Chinese market. This rating is the highest level a debt issuer can obtain.

“So in China, our debt rating is right at the very top,” said Purbaya at the State Budget press conference at the Ministry of Finance office in Jakarta on Tuesday, 21 July 2026.

Purbaya said the AAA rating is important for Indonesia because China is a large and promising debt market. “With this AAA rating, we should not find it too difficult to issue debt securities there,” he said.

According to Purbaya, Lianhe’s assessment was based on several key factors in Indonesia, such as economic growth, solid economic fundamentals, the largest economy in Southeast Asia with resilience to external shocks, and a government debt-to-gross domestic product (GDP) ratio below 40 per cent.

Purbaya went on to say that the Panda Bond issuance is planned for Thursday, 23 July 2026, with a target value of USD 1 billion. He said the figure was deliberately limited even though potential market demand is estimated to be far greater. “Because this is a new market, we are testing the waters first. Even though the offering and the bids may be very large, we are limiting it to USD 1 billion for now,” he said.

Bank of China is acting as lead underwriter for the issuance. The joint lead underwriters and joint bookrunners consist of the Industrial and Commercial Bank of China (ICBC), China International Trust and Investment Corporation (CITIC), China International Capital Corp (CICC), and the Development Bank of Singapore (DBS).

Meanwhile, several major Chinese banks are serving as co-managers, including the Agricultural Bank of China (ABC), China Construction Bank (CCB), Commercial Bank, and China Action Bank.