TEMPO.CO, Jakarta - Indonesia plans to issue so-called Panda Bonds in China as part of efforts to stabilize the rupiah by diversifying its international financing sources, Finance Minister Purbaya Yudhi Sadewa said.
“To strengthen the exchange rate, we will also issue Panda Bonds in China, which offer lower interest rates, so that we are not overly reliant on the US dollar. With this, our financing diversification will improve in the future,” Purbaya said, as quoted by Antara News Agency on Wednesday, May 6, 2026.
Purbaya explained that the diversification strategy is aimed at reducing Indonesia’s dependency on the dollar. Issuing debt instruments in China’s domestic market is expected to benefit the government by providing more competitive borrowing costs compared to traditional sources.
The plan emerged from discussions during a limited cabinet meeting led by President Prabowo Subianto, attended by several ministers from the Red and White Cabinet and members of the Financial System Stability Committee (KSSK). The meeting primarily focused on maintaining the momentum of accelerated economic growth.
In addition to exchange rate measures, the government highlighted recent economic performance, noting that national growth reached 5.61 percent, a notable increase from 5.39 percent in the previous period.
“We discussed the economic growth figure with the president, and we are indeed seeing a turnaround. The economy is now experiencing acceleration,” Purbaya said.
To sustain this momentum into the second quarter of 2026, he added, the government is preparing additional economic stimulus measures. The package is expected to be announced soon and implemented in early June to help boost economic activity and maintain growth.
Read: Indonesia Sees Path to 6% Growth After Strong Q1 Performance
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