Purbaya Ready to Increase Panda Bond Issuance if Interest Rates Are Cheaper

Finance Minister Purbaya Yudhi Sadewa has opened the possibility of expanding the issuance of panda bonds in the Chinese market if the offered interest rates are cheaper than US dollar-denominated debt instruments. This step is seen as a way to help the government reduce borrowing costs while strengthening the country’s financing sources. Purbaya stated that the interest rate for panda bonds is estimated to be around 2.3 per cent or slightly higher. According to him, this figure is lower than the cost of issuing global dollar-based debt. “If the interest rate is lower, it saves us money,” said Purbaya during a media briefing at the Ministry of Finance in Jakarta on Monday (11/5/2026). He added that the government also views panda bonds as a diversification step for financing so that the country’s funding sources do not rely solely on one market. With more diverse financing sources, the government is considered to have stronger room to manage debt. “Secondly, diversification, so we have stronger funding sources,” he said. Purbaya admitted that he has asked the Director General of Financing and Risk Management at the Ministry of Finance, Suminto, to gauge investor interest in panda bonds. According to him, the issuance of such debt could be expanded if market demand is high. “I told Mr Minto, if there are many interested parties, just go for it there, increase it there,” Purbaya revealed.