Purbaya Draws Rp18.4 Trillion from Panda Bond: 'This is Cheaper'

Finance Minister Purbaya Yudhi Sadewa successfully issued global debt securities denominated in yuan, known as Panda Bonds. The government raised 7 billion yuan, equivalent to US$1.033 billion or Rp18.4 trillion, to help cover the 2026 State Budget (APBN) deficit. “We have a cheaper alternative source of funding compared to before,” Purbaya said when met at his office on Friday (24/7/2026). Purbaya only drew down the targeted amount, despite total orders from investors reaching 17 billion yuan, or 2.4 times the amount offered. “Because the target was just one billion. The lead underwriter advised not to take too much now. Why? To keep the price good. So that the next one will be even better,” he explained. The Panda Bond transaction consisted of a 3-year tenor worth 5.6 billion yuan and a 5-year tenor worth 1.4 billion yuan, with coupons of 1.90% and 2.19% respectively. The settlement is scheduled for 30 July 2026.