Panda bonds are issued in mainland China by foreign entities, while Dim Sum bonds are issued offshore, mainly in Hong Kong, for international investors.
Purbaya said Panda bonds could offer yields of 2.3 percent–2.5 percent, lower than Dim Sum bonds at 2.5 percent –2.9 percent .
He said the issuance would diversify Indonesia’s funding sources and reduce reliance on the U.S. dollar.
The ministry has yet to set a target issuance size.
Purbaya instructed financing and risk management director general Suminto to scale up issuance if investor demand is strong.
“If interest is high, increase the size. If not, it will save costs,” he said.
Panda bonds are part of Indonesia’s strategy to diversify financing and strengthen the state budget.
As of March 31, 2026, Indonesia had realized Rp257.4 trillion (US$14.69 billion) in budget financing, including Rp258.7 trillion in debt and Rp1.3 trillion in non-debt financing.
Purbaya said China’s deep liquidity and large financial market could absorb Indonesian debt instruments at competitive yields.
He added Chinese investors show strong confidence in Indonesia’s economic fundamentals and are less sensitive to credit ratings.
In return, Indonesia may allow China to issue debt securities in the domestic market.
Related news: Indonesia targets June launch for first Panda Bond sale
Translator: Imamatul Silfia, Yashinta Difa
Editor: Rahmad Nasution
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