Visit Beijing, Purbaya Prepare for the Issuance of Sovereign Panda Bonds

JAKARTA - Minister of Finance Purbaya Yudhi Sadewa made a working visit to China to strengthen the strategy for financing national development, expand the investor base, and strengthen economic cooperation with strategic partner countries amid global economic dynamics and uncertainty.

One of the main focuses of the visit was the preparation for the issuance of sovereign Panda Bonds as an alternative source of government funding.

In the agenda, Purbaya held a bilateral meeting with the Minister of Finance of the People's Republic of China (PRC), Lan Fo'an, in Beijing on Wednesday, June 17.

"Indonesia is not waiting. We are moving early by building a strong and sustainable financing foundation so that development can continue in the midst of various global challenges," he said in an official statement.

According to him, the visit to Beijing is part of a long-term financing strategy that has been carefully designed by the government, reflecting the commitment to continue expanding access to competitive funding sources and increasing the confidence of international investors.

"This is part of the planning that has been prepared much earlier. The government continues to implement a financing strategy that is measured, disciplined, and oriented towards the long term," he explained.

Purbaya also highlighted the strength of Indonesia's economic fundamentals, reflected in the government's debt ratio, which is maintained, the budget deficit which remains within safe limits, and stable economic growth.

"We came to Beijing because Indonesia has a strong position to build mutually beneficial cooperation. When the economic foundation is solid, we have room to act more strategically and more confidently," he said.

According to him, investor confidence in Indonesia is also considered strong, as seen from the high interest in government financial instruments and maintaining the stability of the national macroeconomy in the midst of global uncertainty.

"Market confidence is not built overnight. It is the result of fiscal discipline, consistent reforms, and policy credibility that the government continues to maintain. Therefore, Indonesia remains an attractive investment destination in the region," he said.

During the meeting, he also emphasized the importance of the economic relationship between Indonesia and China which has been developing well.

Purbaya hopes that in the future, the two countries can further strengthen collaboration in various international forums, such as the G20 Finance Track, the APEC Finance Ministers' Process, and ASEAN+3.

Regarding the plan to issue sovereign Panda Bonds, the government views the instrument as a strategic step to diversify sources of financing while expanding the reach of investors.

In addition to strengthening economic relations between the two countries, the issuance of the bonds is also expected to support the use of local currencies in bilateral transactions through the Local Currency Transaction (LCT) scheme and deepen cooperation between the Indonesian and Chinese financial sectors.

The government is optimistic that this working visit will further strengthen Indonesia's position in managing sustainable development financing and expanding the network of strategic partnerships with global investors, and this proactive step is believed to provide long-term benefits for the national economy and increase Indonesia's resilience in facing various global challenges.

"At a time when some parties choose to wait for certainty, Indonesia chooses to prepare for the future. That is the reason we continue to move, build trust, and strengthen the foundation of the nation's economy," he concluded.

In addition to meeting with the Chinese Minister of Finance, in the course of his visit, Purbaya is also scheduled to meet with a number of business actors and investors.

He will also discuss with representatives of the People's Bank of China (PBOC), the Shanghai Cooperation Organization (SCO) Development Bank, and the Asian Infrastructure Investment Bank (AIIB) to expand opportunities for economic and financing cooperation.