Purbaya postpones Panda Bond issuance until end of July

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa has decided to postpone the issuance of Panda Bonds from the original schedule of early July to the end of July 2026. The delay follows a surge in investor interest in China. According to Purbaya, the additional time is needed to allow several large fund managers and banks in the country to complete their internal investment approval processes before the debt securities are issued. “The Panda Bond was originally going to be issued in early July, but it turns out investor interest increased. Some large fund managers or big banks there were late to learn about it, 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. He stated that investor enthusiasm exceeding expectations was the main reason the government adjusted the issuance schedule for the renminbi-denominated bonds. The Finance Minister views the request as a positive signal of strong Chinese investor interest in Indonesian financing instruments. Consequently, the government chose to provide additional time to optimise investor participation. “I think it is good. It means the interest is substantial, so I postponed it until the end of July,” Purbaya added. With the issuance schedule pushed back, the number of participating investors is expected to increase so that the funds raised can meet the set target. In addition to the growing interest from fund managers, Purbaya revealed that several major financial institutions in China are also beginning to show interest in participating in the Panda Bond issuance. Some banks have also requested the opportunity to become underwriters to help expand the marketing of Indonesian bonds in the Chinese market. “Several of them also asked to become underwriters so they can issue more. I said next time I will allow them to be underwriters so that more parties are selling our bonds there,” he disclosed. The government views the Panda Bond issuance as part of a strategy to diversify state financing sources while expanding the international investor base beyond traditional markets, which have been dominated by US dollar-denominated instruments.