Purbaya Claims Full Chinese Support for Panda Bond
Finance Minister Purbaya Yudhi Sadewa has received full support from China’s central bank, the People’s Bank of China (PBOC), regarding plans to issue a Panda Bond in the Bamboo Curtain country. During a two-day visit to Beijing, Purbaya held a series of strategic meetings with China’s Ministry of Finance, the PBOC, the Asian Infrastructure Investment Bank (AIIB), and investors. The aim was to expand financing access and strengthen market confidence in the Indonesian economy.
“The results were quite good. We met with China’s Finance Minister, the People’s Bank of China, and investors here. The support given to Indonesia is very strong,” Purbaya said in a statement received on Friday (19/6).
One key outcome of the visit was the Chinese government’s full support for Indonesia’s planned inaugural Panda Bond issuance in China’s domestic financial market. According to Purbaya, both China’s Ministry of Finance and the PBOC demonstrated a strong commitment to supporting the bond issuance process. “We requested support for the Panda Bond issuance and they were very supportive. Even when meeting the PBOC, we asked for an acceleration of the licensing process. They said that once the official application documents are submitted, the process will be expedited immediately,” the state treasurer said.
The Finance Minister stated that the Panda Bond issuance is part of a strategy to diversify national development financing sources so as not to depend on a single currency or financial market. “We want to diversify development funding sources so that we are not influenced by just one currency source. This is also in line with the local currency transaction cooperation already established between Indonesia and China,” he said.
According to Purbaya, the support provided by China reflects a high level of confidence in Indonesia’s economic condition. “Discussions with them were very constructive and showed that China’s trust in Indonesia is very good. Both countries share a spirit to strengthen closer economic ties,” he said. In the various meetings, Purbaya also explained Indonesia’s economic condition, which remains solid amid global dynamics. He emphasised that the national economic fundamentals are in a healthy state and that various investment barriers that had been a concern for investors are being continuously addressed by the government. “Indonesia’s economic fundamentals have no problems. Several issues that were of concern to investors have been responded to and are being fixed by the government, in line with the President’s direction to create an increasingly better investment climate,” he said.
Purbaya dismissed suggestions that the visit was driven by financing and fiscal pressures. A main agenda of the visit was to prepare for the Panda Bond issuance. The Finance Minister is targeting the Panda Bond issuance for June 2026 as a strategy to diversify state budget financing. He noted that Panda Bonds can reduce dependence on the US dollar and open access to China’s financial markets. Purbaya also highlighted the relatively lower yield compared to other markets, in the range of 2.3% to 2.5%. He described the meetings as a crucial momentum to garner full support from China’s highest financial authorities. The Finance Minister also reportedly secured a funding commitment of US$17 billion from the Asian Infrastructure Investment Bank (AIIB). On Wednesday (17/6), he held a bilateral meeting with China’s Finance Minister Lan Fo’an.