Purbaya Views Panda Bonds as More Attractive than Dim Sum Bonds, with Lower Interest Rates?

Finance Minister Purbaya Yudhi Sadewa considers the issuance of global bonds denominated in yuan, or Panda Bonds, more attractive than Dim Sum Bonds because they offer lower funding costs.

According to Purbaya, the yield on Panda Bonds is estimated to be in the range of 2.3 per cent to slightly above that level, still lower than government bonds in US dollars.

“The interest rate will be cheaper than US dollar bonds,” said Purbaya during a media briefing at the Ministry of Finance on Monday (11/5/2026).

Purbaya stated that the issuance of these yuan bonds is part of a strategy to diversify state financing so as not to be too dependent on the US dollar or a single funding source.

Purbaya also revealed that he has asked the Director General of Financing and Risk Management at the Ministry of Finance, Suminto, to increase the portion of issuance if investor demand is high.

According to Purbaya, China’s financial market has substantial liquidity and sufficient capacity to absorb large amounts of Indonesian government debt instruments.

Additionally, he believes that investors in China have high confidence in Indonesia’s economic fundamentals, making them less sensitive to changes in credit ratings.

Purbaya also mentioned that he has met with the Industrial and Commercial Bank of China (ICBC), which is said to be ready to support Indonesia’s Panda Bond issuance.

Previously, Purbaya targeted the issuance of global debt in renminbi or Panda Bonds next month.

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

This instrument is being prepared to expand funding sources. The government also aims to reduce pressure on the rupiah exchange rate amid global conditions.

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