Indonesia's US$1.4 billion Panda Bond sale oversubscribed 1.73 times

This (oversubscription) demonstrates the confidence that international investors have in Indonesia's economic management..

Jakarta (ANTARA) - Finance Minister Suahasil Nazara announced that Indonesia's latest issuance of Chinese yuan-denominated sovereign bonds, known as Panda Bonds, totaling 10 billion yuan (approximately US$1.4 billion), was oversubscribed by 1.73 times.

Priced on November 10, 2026, the issuance attracted total orders of approximately 17.26 billion yuan (around US$2.4 billion), marking Indonesia's second Panda Bond issuance of the year.

"This (oversubscription) demonstrates the confidence that international investors have in Indonesia's economic management and the handling of its State Budget," Suahasil said at the monthly "APBN Kita" press conference in Jakarta on Friday.

The Panda Bonds comprised three series with maturities of three, five, and seven years, valued at 5.7 billion yuan (approximately US$800 million), 3.7 billion yuan (around US$520 million), and 600 million yuan (around US$85 million), respectively.

The debt instruments received an 'AAA' rating with a 'stable' outlook from China Lianhe Credit Rating Co., Ltd.

Suahasil emphasized that maintaining investor confidence in government securities (SBN) remains crucial, particularly amid broader global financial market developments and recent index reviews, including those conducted by MSCI.

The successful Panda Bond issuance followed a major international global sukuk (Islamic bond) offering worth US$3 billion, which was priced on November 6, 2026.

The offering attracted strong demand, with subscriptions reaching 2.9 times the issuance size and total orders amounting to US$8.9 billion from a geographically diversified investor base spanning Europe, North America, the Middle East, and Asia.

During the briefing, Suahasil also reported on government debt financing figures as of October 31, 2026. Net debt financing reached Rp629.3 trillion (US$34.58 billion), equivalent to 75.6 percent of the full-year State Budget target of Rp832.2 trillion (US$45.73 billion).

The financing comprised Rp586.1 trillion (US$32.20 billion) from Government Securities (SBN), representing 73.3 percent of the Rp799.5 trillion (US$43.93 billion) target, and Rp43.2 trillion (US$2.37 billion) in loans, equivalent to 132.1 percent of the Rp32.7 trillion (US$1.80 billion) target.

Suahasil emphasized that government borrowing continues to be carried out prudently, with the government balancing financing needs against cash flow requirements while closely monitoring global market conditions.

"We carefully select the optimal timing—timing that minimizes costs—while also considering our existing cash needs and market dynamics," Suahasil concluded.

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Translator: Rizka Khaerunnisa, Yashinta Difa
Editor: M Razi Rahman
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