Indonesia Raises Rp 18.4 Trillion from Oversubscribed Panda Bond Issuance

The Indonesian government has issued global bonds denominated in yuan, known as Panda Bonds, raising a total of 7 billion yuan or US$1.033 billion, equivalent to Rp 18.4 trillion (at an exchange rate of Rp 17,890 per US dollar). Finance Minister Purbaya Yudhi Sadewa stated that the high level of interest from Chinese investors in the sovereign bonds is in line with the AAA rating assigned by the Lianhe Credit Rating agency. This strong demand was evidenced by the total order book reaching 17 billion yuan, or 2.4 times the amount offered. “This shows that Mr. Prabowo’s fiscal policies are correct. It is not brutal as some people have claimed,” Purbaya said at his office in Jakarta on Thursday (23/7/2026). The Panda Bond transaction consists of a 3-year tenor worth 5.6 billion yuan and a 5-year tenor worth 1.4 billion yuan, with coupons of 1.90% and 2.19% respectively. The settlement is scheduled for 30 July 2026. Purbaya confirmed that the funds will be used to cover the 2026 state budget deficit.