Purbaya states Panda Bond is more attractive than Dim Sum Bond

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa stated that global bonds denominated in yuan, or Panda Bonds, possess greater attractiveness than Dim Sum Bonds because they offer more competitive yields. Panda Bonds are scheduled to be issued next month, while Dim Sum Bonds will be released in October 2025. Purbaya, when met at the Ministry of Finance office in Jakarta on Monday, explained that Panda Bonds will subsequently offer lower yields compared to Dim Sum Bonds. The previous Dim Sum Bond yields ranged from 2.5 percent to 2.9 percent. Meanwhile, the current yield offerings in the Chinese financial market are in the range of 2.3 percent to 2.5 percent. The issuance of these bonds, he said, will add to the diversification of Indonesia’s portfolio, thereby reducing the country’s dependence on the US dollar. “I told Mr Minto (Director General of Financing and Risk Management) that if there are many interested parties, increase the allocation there. If the interest rate is lower, it’s more economical for us,” he stated. Previously, Purbaya explained that the issuance of Panda Bonds is a strategy for diversifying financing so that the State Revenue and Expenditure Budget (APBN) becomes more robust because it does not rely on a single source.