TEMPO.CO, Jakarta - The Indonesian government through the Ministry of Finance has issued its first overseas Sovereign Bond (SB) denominated in Chinese Yuan or Panda Bond on Thursday, July 23, 2026. In its inaugural issuance, the government issued bonds worth CNY 7 billion or around Rp 18.5 trillion.
The Directorate General of Financing and Risk Management (DJPPR) stated that the transaction received a positive response from investors in the domestic Chinese market, with a total peak overbook of around CNY 17 billion, or a bid-to-cover ratio of 2.4 times. 'The large demand from investors enabled the government to obtain efficient funding costs through the establishment of competitive yield levels,' DJPPR wrote in an official statement quoted on Saturday, July 25, 2026.
The proceeds from the issuance of Panda Bonds will be used to fulfill the financing needs of the 2026 State Budget (APBN). DJPPR stated that the Panda Bond issued in this transaction obtained a AAA rating from China Lianhe Credit rating.
Prior to this, Finance Minister Purbaya Yudhi Sadewa stated that the AAA rating is the highest level that a bond issuer can obtain. He mentioned that the AAA rating is important for Indonesia because China is a large and promising bond market. 'With this AAA rating, we should not have too much difficulty in issuing bonds there,' Purbaya said at the APBN KiTa press conference at the Ministry of Finance office, Jakarta, on Tuesday, July 21, 2026.
He explained that Lianhe's assessment was based on several key factors in Indonesia such as economic growth, solid economic fundamentals, the largest economy scale in Southeast Asia with resilience to external shocks. In addition, the government's debt-to-gross domestic product (GDP) ratio is below 40 percent.
Raya Aulia Jenar contributed to the writing of this article.
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