Purbaya Ensures Panda Bonds Are Attractive, Cheaper than Dim Sum Bonds
Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has assured that the new debt securities in China, known as Panda Bonds denominated in yuan, will have strong competitiveness. This is because the government will offer these securities at a cheaper price compared to the Dim Sum Bonds issued in October 2026.
“It’s cheaper, right? China at 2.3% last time for our Dim Sum. Maybe around that, up a little bit, so the interest will be cheaper than US (debt securities) in dollars,” said Purbaya when met by reporters at the Ministry of Finance office on Monday (11/5/2026).
Furthermore, he revealed that the issuance will take place next month, in June 2026. He plans to conduct a market offering next month.
He has instructed the Director General of Financing and Risk Management, Suminto, to open the Panda Bonds offering in large quantities if there is significant interest.
“I told Mr Minto, if there’s a lot of interest, just go for it there, increase it there, because if the interest is lower, it’s savings for us,” he said.
Previously, Purbaya explained that the issuance of these debt securities will reduce the country’s dependence on the US dollar, particularly in terms of debt procurement.
On various occasions, he has also revealed that the yield demanded by Chinese investors is only around 2.3%, far lower than the yield on government securities (SBN) with a reference tenor of 10 years, which has been around 6%.
“We continue to diversify so we’re not dependent on the stance of America or Western countries alone, and the yield is also lower at 2.3% to 2.5%,” said Purbaya when met in Central Jakarta on Wednesday (6/5/2026).
Therefore, he is confident that the issuance of Panda Bonds will create diversity in the supply of foreign exchange or forex in Indonesia. No longer dominated by the US dollar.
Purbaya also revealed that his side has met with representatives from the Industrial and Commercial Bank of China Ltd (ICBC) to discuss the continuation of the issuance.
“(Issuance next month) Maybe Mr Minto (Director General of Financing and Risk Management) has invited me to China. We have been in contact with ICBC; they are ready to carry it out there,” he said.