OJK Clarifies Regulations on Panda Bond and Patriot Bond Issuance

The Financial Services Authority (OJK) has provided clarification regarding the regulatory status and administration of government debt instruments denominated in Chinese Yuan (Renminbi), known as Panda Bonds, and the special debt instrument known as the Patriot Bond issued by Danantara. The OJK Executive Head of Capital Market, Derivative Financials, and Carbon Exchange Supervision, Hasan Fawzi, stated that there are regulatory exceptions regarding the issuance documents for Panda Bonds.

Panda Bonds are not subject to the bond registration procedures at the OJK. “The issuance of Panda Bonds by the Government of the Republic of Indonesia does not require the submission of Registration Statement documents to the OJK,” Hasan stated in a written response from the OJK Monthly Board of Commissioners Meeting, as reported on Saturday, 1 August 2026.

In contrast to Panda Bonds, the issuance documents for the Patriot Bond by PT Danantara Investment Management (DIM) must be reported or registered with the OJK. Furthermore, Hasan revealed that PT DIM issued its first Long-Term Debt Instrument (SUJP) for the Patriot Bond in 2025. “In March 2026, DIM issued SUJP II Phase I. For subsequent issuances, no documents have yet been submitted to the OJK,” he added.

Panda Bonds are Yuan-denominated debt instruments launched by the Ministry of Finance on 23 July 2026. These bonds are issued in two series with tenures of 3 and 5 years and are offered to the public in the domestic Chinese bond market. The proceeds from this issuance will be used to meet the financing requirements of the 2026 State Budget (APBN).

Meanwhile, the Patriot Bond is issued by Danantara through a private placement mechanism. This bond is designed as a collaborative funding mechanism between the government and the private sector, providing tenures of 5 and 7 years. Danantara’s debt instruments have sparked debate due to their inclusion in the revision of the Law on the Development and Strengthening of the Financial Sector (UU P2SK). One article in Law Number 4 of 2026 regarding the P2SK revision stipulates that purchasers of Danantara’s Patriot Bond and Merah Putih Bond shall receive state protection from criminal prosecution.