en.malanginspirasi.com – Finance Minister (Menkeu) Purbaya Yudhi Sadewa revealed the government’s plan to issue panda bonds as a strategy to diversify funding sources and strengthen the rupiah exchange rate amidst global dynamics.
Panda Bonds are debt securities (bonds) issued by the Indonesian government in the Chinese financial market using the Renminbi or Yuan currency.
This instrument functions to diversify funding sources, obtain lower interest rates, and reduce dependence on the United States (US) dollar.
Purbaya stated that the issuance of panda bonds can be effective because it can reduce the government’s dependence on US dollar-based financing.
By utilizing the Chinese financial market and the Yuan or Renminbi currency, pressure on demand for the US dollar can be reduced.
“If we look at it, panda bonds will be a good diversification of our funding sources. They won’t just be US dollars, but also yuan or renminbi. This will clearly reduce the government’s demand for dollars, thus slightly easing pressure on the rupiah,” he said in a written statement received on Saturday (May 16, 2026).
He explained that Chinese investors and financial institutions are quite interested in this instrument.
Purbaya admitted to having met with several major Chinese banks, such as the Industrial and Commercial Bank of China and Bank of China, which have expressed interest in assisting with investments and purchasing Indonesian panda bonds.
In addition to expanding the investor base, panda bonds also offer lower funding costs.
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Purbaya stated that the yield on panda bonds is around 2.3 percent, lower than the yield on US dollar-denominated debt securities.
“The yield is low, at that time around 2.3 percent, almost half the interest or yield on the debt securities we issue in dollars. I think this will be very attractive,” said Menkeu.
Purbaya believes China’s large financial market presents a strategic opportunity for Indonesia to expand access to financing.
This diversification of the funding market may strengthen the stability of the rupiah exchange rate in the medium term.
He also confirmed that the government will continue implementing its strategy to strengthen the bond market, including preparing additional instruments, the impact of which he claims will begin to be seen in the near future.
“I will continue to operate the bond market, and there will be additional instruments that may not be announced yet, but their impact will be very visible next week,” Purbaya concluded.
