Meeting Chinese Finance Minister Ahead of Panda Bond Issuance, Purbaya Denies Indonesia's Economy Is Under Pressure

Finance Minister Purbaya Yudhi Sadewa held a bilateral meeting with China’s Finance Minister Lan Fo’an in Beijing on Wednesday, 17 June 2026, ahead of Indonesia’s planned Panda Bond issuance. Despite the move to issue yuan-denominated bonds to strengthen development financing access and broaden the investor base in China, Purbaya denied that the government was acting under economic duress. “We came to Beijing not because we are desperate, but because Indonesia is in a strong position to build mutually beneficial cooperation,” Purbaya stated. “When the economic foundation is solid, we have the space to act more strategically and with greater confidence.” He emphasised that Indonesia’s economic fundamentals remain robust, reflected in a manageable government debt ratio, a safe budget deficit limit, and sustained economic growth. Purbaya noted that investor confidence in Indonesia remains high, demonstrated by strong interest in government financial instruments and maintained macroeconomic stability amid global uncertainty. “Market trust is not built overnight. It is the result of fiscal discipline, consistent reforms, and policy credibility that the government continues to uphold. This is why Indonesia remains an attractive investment destination in the region,” he said. A key agenda of the working visit was preparing for the sovereign Panda Bond issuance, a strategic step to diversify financing sources and expand the investor base while strengthening Indonesia-China economic relations. The issuance is also expected to support the use of local currencies in bilateral transactions, known as Local Currency Transaction (LCT), and encourage deeper financial cooperation between the two countries. During the meeting, Purbaya underscored the importance of the close economic relationship between Indonesia and China and expressed hope for continued strengthened cooperation in various international forums, including the G20 Finance Track, APEC Finance Ministers’ Process, and ASEAN+3.