Purbaya Prepares Panda Bond Issuance Next Month to Reduce US Dollar Dependency

JAKARTA - Finance Minister Purbaya Yudhi Sadewa is targeting the issuance of global bonds in renminbi, or Panda Bonds, next month.

The Ministry of Finance is preparing technical steps and investor outreach. A team is scheduled to travel to China to finalise the plans.

“The aim of issuing Panda Bonds is for Indonesia not to be overly dependent on funding in US dollars,” Purbaya said at Kebon Sirih, Jakarta, on Wednesday (6/5/2026).

Purbaya considers diversification of financing essential to maintain fiscal stability. China’s market is seen as offering a more flexible funding alternative.

Panda Bonds also provide more competitive costs. The government estimates yields in the range of 2.3 to 2.5 per cent.

This figure is lower compared to bonds in US dollars or other currencies.

Interest from Chinese investors is deemed strong. The government has conducted initial outreach with the Industrial and Commercial Bank of China (ICBC).

“We have discussed with ICBC and they are ready. With a yield of around 2.3 per cent alone, demand is already very high,” Purbaya said.

“They are not too reliant on ratings because they trust Indonesia’s good economic fundamentals,” he added.

The government targets issuance in the near term. The visit to China will ensure technical and market readiness.

This step is part of a more adaptive financing strategy.

Previously, Indonesia has issued Dimsum Bonds in Hong Kong. The presence of Panda Bonds in China’s domestic market is expected to broaden the investor base and strengthen the country’s financing resilience.