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Ralph Jennings

Indonesia is expected to start issuing at least US$1 billion in yuan-denominated bonds in China within days or weeks, the Southeast Asian country’s national news agency Antara said on Friday, as part of an effort to stabilise domestic finances and reduce dependence on the US dollar.
The Ministry of Finance in Jakarta said the planned issuance of panda bonds – debt securities sold in China’s domestic bond markets – could start before mid-July, pending final signoffs in Beijing, Antara reported.
The Jakarta-based news agency said Indonesia would look to panda bonds “as part of a broader strategy to diversify its international financing sources and shield the Indonesian rupiah from global market volatility”.
Indonesian officials would need new funding sources to support government initiatives, but would hope to avoid issuing dollar-denominated bonds while the US currency was relatively strong and their own rupiah currency was weakening, said Song Seng Wun, an economic adviser based in Singapore.
“If you’re issuing bonds in US dollars and your currency is weakening, you’re going to pay a lot more,” Song said.
The rupiah has depreciated this year due to capital outflows from Indonesia’s domestic markets and global volatility in energy prices.
During an official visit to Beijing from June 16 to 19, Indonesian Finance Minister Purbaya Yudhi Sadewa received support from People’s Bank of China governor Pan Gongsheng to “fast track the necessary regulatory approvals”, Antara said in its report.

Purbaya has indicated that his government could increase the US$1 billion issuance amount “if investor demand proves strong”, according to the Antara report.
The Chinese central bank confirmed on its website on June 18 that Pan and Purbaya had met to discuss a panda bond issuance.
Herman Saheruddin, the Indonesian finance ministry’s acting director general of financial sector stability and development, was quoted by Antara as saying that the Chinese central bank had “welcomed the issuance plan and expressed readiness to accelerate the process”.
PBOC was now awaiting final documentation from the project’s underwriters before granting regulatory approval, Purbaya said via Antara.
Foreign governments, international banks and multinational companies have increasingly entered China’s domestic bond market this year, with panda bond issuance reaching a record high of 136.5 billion yuan (US$20.1 billion) in the first five months of 2026, according to data compiled by Fareast Credit Rating.
Analysts said Beijing’s looser monetary policy, a wider bond market opening and expanding yuan internationalisation underpinned investor interest.


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The Southeast Asian country will offer the bonds in an attempt to better stabilise its national finances as the rupiah continues to fall


The Southeast Asian country will offer the bonds in an attempt to better stabilise its national finances as the rupiah continues to fall.


Indonesia set to issue US$1 billion in panda bonds in China

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The Southeast Asian country will offer the bonds in an attempt to better stabilise its national finances as the rupiah continues to fall

The Southeast Asian country will offer the bonds in an attempt to better stabilise its national finances as the rupiah continues to fall