TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa announced that the Indonesian government will issue debt securities in the Chinese capital market, known as Panda Bonds, backed by a coveted AAA rating from Lianhe Credit Rating, a prominent rating agency in China. This rating represents the highest credit grade a debt issuer can attain.
"So in China, our credit rating sits right at the top tier," Purbaya said during the APBN KiTa press conference at the Ministry of Finance in Jakarta on Tuesday, July 21, 2026.
Purbaya emphasized that the AAA rating is crucial for Indonesia, given China's vast and promising debt market. "With this AAA rating, we should not have too much difficulty issuing debt securities there," he said.
According to Purbaya, Lianhe's assessment is based on several key economic factors, including Indonesia's growth, solid fundamentals, status as Southeast Asia's largest economy with resilience against external shocks, and a government debt-to-gross domestic product (GDP) ratio below 40 percent.
Furthermore, Purbaya stated that the Panda Bond issuance is scheduled for Thursday, July 23, 2026, targeting an amount of US$1 billion. He noted that this figure is intentionally capped even though potential market demand is expected to be much larger. "Because this is a new market, we want to test the waters first. Even though bids may come in very high, we will limit it to US$1 billion for now," he said.
Bank of China will serve as the lead underwriter for the issuance. Meanwhile, the joint lead underwriters and joint bookrunners comprise Industrial and Commercial Bank of China (ICBC), China International Trust and Investment Corporation (CITIC), China International Capital Corp (CICC), and Development Bank of Singapore (DBS).
Additionally, several major Chinese lenders will serve as co-managers, including Agricultural Bank of China (ABC), China Construction Bank (CCB), Commercial Bank, and China Action Bank.
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