Panda Bonds to Be More Attractive than Dim Sum Bonds, Purbaya Explains Reasons

Finance Minister Purbaya Yudhi Sadewa emphasised that global debt securities denominated in Yuan, or Panda Bonds, possess greater appeal than Dim Sum Bonds. The reason is that the debt instruments, scheduled for issuance next month, will offer more competitive yields compared to the Dim Sum Bonds released in October 2025. Purbaya explained that Panda Bonds will subsequently provide lower yields than Dim Sum Bonds. The yields for the previous Dim Sum Bonds ranged from 2.5 per cent to 2.9 per cent. Meanwhile, the current yield offerings in China’s financial market are in the range of 2.3 per cent to 2.5 per cent. However, Purbaya admitted that he has not yet determined the issuance target for Panda Bonds. He only provided instructions to the Director General of Financing and Risk Management of the Ministry of Finance, Suminto, to open a large Panda Bond offering if there is high incoming demand. The issuance of these bonds will add to Indonesia’s portfolio diversification, thereby reducing the country’s dependence on the US dollar. “I told Mr Minto (Director General of Financing and Risk Management) that if there are many interested parties, increase the amount there. If the interest rate is lower, it saves us money,” said Purbaya during a media briefing at the Ministry of Finance, Jakarta, on Monday, 11 May 2026. Previously, Purbaya explained that the issuance of Panda Bonds is a financing diversification strategy to make the state budget more robust by not relying on a single source. He continued that China has sufficient liquidity and a large-capacity financial market, making it believed capable of absorbing Indonesian government debt instruments. Additionally, China’s financial market also offers competitive yields in the range of 2.3 per cent to 2.5 per cent. Another potential factor, according to Purbaya, is that the Chinese market has strong confidence in Indonesia’s economic fundamentals, so its assessment is not vulnerable to credit rating influences. He also admitted to having met with the Industrial and Commercial Bank of China (ICBC), where China expressed readiness to participate in the Panda Bond issuance. As a reciprocal gesture to the intention of issuing Panda Bonds, the Indonesian Government is also opening opportunities for China to issue debt securities or bonds in the domestic market.