Indonesia’s plan to issue Panda Bond has received strong support from the Chinese government and the People’s Bank of China (PBOC) following Finance Minister Purbaya Yudhi Sadewa’s visit to Beijing (19/06).

The visit was conducted to strengthen financing cooperation and increase market confidence in Indonesia’s economy.

During the two-day visit, Finance Minister Purbaya held meetings with China’s Ministry of Finance, PBOC, Asian Infrastructure Investment Bank (AIIB), and investors.

"The results are quite good. We met with the Chinese Finance Minister, the People’s Bank of China, and also investors here. The support given to Indonesia is very strong," said Finance Minister Purbaya in Beijing on Friday (18/6) local time.

China Supports Acceleration of Indonesia’s Panda Bond Issuance Process

The visit resulted in a commitment from the Chinese government and PBOC to support the smooth issuance of Indonesia’s first Panda Bond in China’s domestic market.

The Finance Minister said the government requested support for the Panda Bond issuance process, including faster licensing approval from the PBOC.

"We asked for support for the Panda Bond issuance and they are very supportive. Even when we met with PBOC, we requested an acceleration of the licensing process. They said that once the official submission documents are received, the process will be immediately accelerated," said Purbaya.

Panda Bond Becomes Part of Indonesia’s Financing Diversification Strategy

The Panda Bond issuance is part of Indonesia’s strategy to diversify national development financing sources and reduce dependence on a single currency.

"We want to diversify development funding sources so that they are not influenced by only one currency source. This is also in line with the local currency transaction cooperation that has already been established between Indonesia and China," said the Finance Minister.

Purbaya said discussions with Chinese officials and investors were constructive and showed strong confidence from China toward Indonesia.

"The discussion with them was very constructive and showed that China’s confidence in Indonesia is very good. Both countries share the same spirit to strengthen closer economic relations," he said.

Indonesia Highlights Strong Economic Fundamentals and Open Investment Approach

Finance Minister Purbaya stated that Indonesia’s economic fundamentals remain healthy amid global challenges. The government continues to improve several issues that have become concerns for investors.

"Indonesia’s economic fundamentals have no problems. Several issues that have become investors’ concerns have been responded to and are being improved by the government according to the President’s direction to create an increasingly better investment climate," he said.

The government also emphasized its principle of non-alignment by continuing to welcome investment cooperation from various countries.

"We apply the principle of non-alignment. The more countries that invest and support Indonesia’s development, the better. China is one of our important partners, but we continue to open cooperation opportunities with the United States, Singapore, Europe, and other countries," concluded the Finance Minister.

PHOTO: MINISTRY OF FINANCE

This article was created with AI assistance.

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