Indonesia Secures Strong Support from China for Inaugural Panda Bond Issuance

Finance Minister Purbaya Yudhi Sadewa has announced strong support from the People’s Bank of China (PBOC) for Indonesia’s inaugural Panda Bond issuance in China’s domestic financial market. “The results were quite positive. We met with China’s Finance Minister, the People’s Bank of China, and investors here. The support given to Indonesia is very strong,” Purbaya said in a written statement on Thursday, 18 June 2026. During his two-day visit to Beijing, Purbaya met with China’s Ministry of Finance, the PBOC, the Asian Infrastructure Investment Bank (AIIB), and investors. The meetings aimed to broaden financing access while strengthening market confidence in the Indonesian economy. A key outcome was the Chinese government’s support for the planned Panda Bond issuance. According to Purbaya, both China’s Ministry of Finance and the PBOC demonstrated commitment to supporting the issuance of the yuan-denominated bonds, including opening the possibility of accelerating the licensing process once official documents are submitted by the Indonesian government. The Panda Bond issuance is part of the government’s strategy to diversify national development financing sources, reducing reliance on a single currency or financial market. This move also aligns with existing local currency transaction cooperation between Indonesia and China. Purbaya assessed that China’s support reflects a high level of confidence in Indonesia’s economic conditions. During the meetings, he outlined that Indonesia’s economic fundamentals remain solid amid global dynamics and that the government is continuously addressing obstacles previously noted by investors. According to Purbaya, various issues highlighted by investors have been addressed by the government in line with the President’s directive to create a more conducive investment climate. These efforts are part of a broader strategy to expand financing and investment sources from various countries. The government, he added, continues to adhere to the principle of non-alignment. Therefore, in addition to strengthening cooperation with China, Indonesia remains open to investment and financing opportunities with other nations, including the United States, Singapore, and European countries.