Purbaya: Chinese Investors Unconcerned by S&P and Moody's Ratings

Finance Minister Purbaya Yudhi Sadewa has addressed the recent downgrades and negative outlooks issued by international rating agencies S&P and Moody’s, asserting that Chinese investors will not be swayed by these assessments regarding Indonesia’s upcoming Panda Bond issuance. The Panda Bond, a yuan-denominated debt instrument, is scheduled for issuance at the end of July 2026. Purbaya explained that investors in China do not rely on ratings from international agencies. “I think they do not care about the rating from international rating agencies for the Panda Bond, because they are not really influenced by ratings from S&P, Moody’s, and others. They will look at what the Chinese rating agency says, and the Panda Bond is rated by a Chinese rating agency,” he said during a media briefing at the Ministry of Finance on Friday (26/6/2026). He added that the Chinese rating agency would announce its assessment a few days before the bond sale, and he anticipated the result would be “very good.” This statement follows Moody’s revision of Indonesia’s outlook from stable to negative in April, while maintaining the country’s rating at Baa2. S&P also affirmed Indonesia’s rating at BBB/Stable/A-2 but noted that Indonesia’s credit indicators are among the most vulnerable in Southeast Asia to prolonged conflict and sustained energy market disruptions.