Indonesia's OJK Clarifies Rules for Panda Bonds, Patriot Bonds
Indonesia’s OJK Clarifies Rules for Panda Bonds, Patriot Bonds
Reporter
August 1, 2026 | 03:35 pm
TEMPO.CO, Jakarta – Indonesia’s Financial Services Authority (OJK) has clarified the regulatory status of two yuan-denominated debt instruments: the government-issued Panda Bonds and Patriot Bonds issued by state investment entity Danantara.
OJK Executive Head of Capital Market Supervision, Financial Derivatives, and Carbon Exchange Hasan Fawzi said Panda Bonds are exempt from the authority’s bond registration requirements.
“The issuance of Panda Bonds by the Republic of Indonesia Government does not require the submission of a Registration Statement document to OJK,” Hasan said in a written statement cited from OJK’s Monthly Board of Commissioners Meeting on Saturday, August 1, 2026.
Unlike Panda Bonds, the issuance documents for Patriot Bonds by PT Danantara Investment Management (DIM) are required to be reported to or registered with OJK.
Different Regulatory Treatment
Hasan said DIM issued its first series of Long-Term Debt Securities (SUJP) under the Patriot Bond program in 2025.
“In March 2026, DIM issued SUJP II Phase I. No documents were submitted to OJK for subsequent issuances,” he said.
Panda Bonds are debt securities issued in Chinese yuan (RMB) by foreign issuers in China’s domestic bond market. Indonesia’s Ministry of Finance launched the country’s first Panda Bonds on July 23, 2026, issuing two series with maturities of three and five years.
The proceeds from the issuance will be used to support the government’s financing needs under the 2026 State Budget.
Danantara’s Patriot Bonds Draw Attention
Meanwhile, Patriot Bonds are issued by Danantara through a private placement mechanism, or a limited offering to selected investors.
The bonds are designed as a financing instrument involving both the government and private sector, with maturities of five and seven years.
Danantara’s bond issuance has attracted public attention after being included in the revision of the Financial Sector Development and Strengthening Law (P2SK Law).
Article 4 of Law No. 4 of 2026, which revises the P2SK Law, states that buyers of Danantara-issued bonds, including Patriot Bonds and Merah Putih Bonds, receive state protection from potential criminal charges.
The provision has sparked debate over the extent of legal protection granted to investors purchasing bonds issued by the state investment entity.
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