Purbaya Targets US$1 Billion Panda Bond Issuance After Securing AAA Rating

Indonesia has obtained a AAA rating with a stable outlook from China Lianhe Rating Co., Ltd. ahead of its planned Panda Bond issuance on Thursday (23/7/2026). Finance Minister Purbaya Yudhi Sadewa said the inaugural issuance marks the government’s initial step in exploring the Chinese debt market. “Regarding the Panda Bond issuance, the plan is to proceed on 23 July with an initial target of US$1 billion,” Purbaya stated during the July edition of the APBN KiTA press conference at the Ministry of Finance office in Jakarta, Tuesday (21/7/2026). Purbaya explained that the initial phase is capped at US$1 billion as a market-testing measure. Although demand is expected to be high, the government has opted to gauge investor interest first before increasing the issuance value in a subsequent phase. “If necessary, we can issue again a few months later with a larger amount,” he said. Purbaya noted that the AAA rating was awarded partly because Indonesia’s economic growth is considered robust, its economic fundamentals are solid, the government debt ratio is low, and it is supported by adequate foreign exchange reserves. With this rating, the government is optimistic the Panda Bond issuance will receive a positive response from investors. “With this AAA rating, we hope the issuance of Indonesian debt securities there will not encounter any difficulties,” he remarked. For the issuance, Bank of China is acting as lead underwriter, whilst Industrial and Commercial Bank of China (ICBC), China International Capital Corporation (CICC), China CITIC Bank (CITIC), and DBS are joint lead underwriters and joint bookrunners. Agricultural Bank of China (ABC), China Construction Bank (CCB), and several other banks have been appointed as co-managers.