Indonesia Raises Rp 18.4 Trillion from Oversubscribed Panda Bond Issuance

Jakarta, CNBC Indonesia — The Indonesian government has just issued a global debt instrument denominated in Chinese yuan, known as a Panda Bond. The total raised was 7 billion yuan, equivalent to US$1.033 billion, or around Rp18.4 trillion (at an exchange rate of Rp17,890 per US dollar).

Finance Minister Purbaya Yudhi Sadewa said the strong interest from Chinese investors in Indonesian debt was in line with the AAA rating awarded by Lianhe Credit Rating.

This was evidenced by total orders from investors reaching 17 billion yuan, or 2.4 times the amount on offer.

“Excellent. That shows that Mr Prabowo’s policies are running fiscal matters correctly. Not as some people have claimed, calling them brutal and so on. Not at all,” Purbaya said at his office in Jakarta on Thursday (23 July 2026).

The Panda Bond transaction comprised a 3-year tranche of 5.6 billion yuan and a 5-year tranche of 1.4 billion yuan, with coupons of 1.90% and 2.19% respectively. Settlement will take place on 30 July 2026.

Purbaya said the proceeds would be used to cover the deficit in the 2026 State Revenue and Expenditure Budget (APBN). “This is to cover our deficit,” he concluded.