Criticism of Panda Bond Issuance by the Finance Minister
Finance Minister Purbaya Yudhi Sadewa is actively pushing for the issuance of debt securities in China's domestic market (Panda Bonds), but this move is seen as full of uncertainty. Bilateral negotiations with China's Ministry of Finance and Central Bank are considered not yet providing concrete guarantees for the national economy.
Bright Institute economist, Awalil Rizky, warns that Purbaya's statements about accelerating permits from Beijing should not be used to build an impression that Indonesia's economy is strong. He stresses that this is an effort to seek debt, and meetings with Chinese authorities are merely about exploring permits, not an indication of market confidence.
Awalil also points out that China's Ministry of Finance and Central Bank are not buyers of the debt securities, but only permit issuers. He considers Purbaya's visit not yet an indicator of a positive economic trend, as the process is still in its early stages and differs from issuing Global Bonds in US dollars, which does not require strict licensing.
https://www.gelora.co/2026/06/