Purbaya Postpones Panda Bond Issuance to Late July 2026, Here's Why

Finance Minister Purbaya Yudhi Sadewa has officially rescheduled the issuance of the Panda Bond, a yuan-denominated debt instrument, from early July 2026 to the end of July 2026. The adjustment was made due to high investor enthusiasm in China, with several large fund managers and banks requiring extra time to complete their internal approval processes before participating. “The Panda Bond was originally going to be issued in early July, but it turns out interest has increased. Some big fund managers or banks there found out late, so they asked us to delay it slightly so they have time to submit their proposals to their investment committees,” Purbaya said during a media briefing in Jakarta on Friday (26/6). The Finance Minister noted that the surge in demand is a positive indicator that Indonesian financing instruments are increasingly attractive in the Chinese market. The government believes granting additional time will optimise investor participation. “I think it’s already good. It means the interest is substantial, so I postponed it until the end of July,” Purbaya added. With the rescheduling, the government hopes to increase the number of participating investors, which is expected to maximise the funds raised in line with the established target. Beyond interest from fund managers, several major Chinese financial institutions have also expressed a desire to get involved in the Panda Bond issuance. Some banks have even offered to act as underwriters to broaden the distribution and marketing of Indonesian bonds in the Chinese market. “Some of them also asked to become underwriters so they can issue more. I told them next time I will allow them to be underwriters so that more of them are selling our bonds there,” he revealed. The Panda Bond issuance is part of the government’s strategy to diversify state financing sources. The move also aims to expand the global investor base beyond traditional markets, which have been dominated by US dollar-denominated instruments.