Indonesia Issues First Panda Bond, Raising About $1 bn to Diversify Funding

Indonesia’s Ministry of Finance announced the successful issuance of its first panda bonds – yuan‑denominated sovereign bonds – on 23 July 2026. The two‑series issue raised CNY 7 billion (about US$1 billion or Rp 18.5 trillion), was oversubscribed by a factor of 2.4, and received a AAA (Stable) rating from China Lianhe Credit Rating. Finance Minister Purbaya Yudhi Sadewa said the proceeds will help close a portion of the 2026 budget deficit, reduce reliance on dollar‑denominated borrowing, and support rupiah stability through local‑currency transactions. He also indicated plans for further panda‑bond issuances later in the year.

In parallel, Purbaya assured that the debt of the Jakarta‑Bandung high‑speed rail (Whoosh) will be settled without burdening the state budget, using special financing vehicles. The ministry also highlighted the passage of the International Financial Centre (PFII) law to attract global capital, and questioned the need for a new regional bond by Jakarta’s provincial government given its existing cash balances. Together, these moves signal Indonesia’s broader strategy to expand financing sources, diversify currency exposure, and strengthen its financial markets.