Reciprocal strategy signals growing bilateral confidence
Indonesia’s Finance Minister Purbaya Yudhi Sadewa said China is exploring the possibility of issuing sovereign bonds in Indonesia, in a move that underscores deepening financial cooperation between the two countries.
The proposal was raised by China’s Finance Minister Lan Fo’an during a bilateral meeting on the sidelines of the IMF-World Bank Spring Meetings 2026 in Washington, D.C.
“China also said, ‘Can we issue our bonds in Indonesia?’” Purbaya said on April 21. “I said yes.”
Reciprocal issuance plans take shape
The initiative forms part of a broader reciprocal strategy, as Indonesia prepares to issue Panda Bonds, yuan-denominated debt instruments sold in China’s domestic market, in the near future.
According to Purbaya, tapping China’s capital markets could significantly reduce Indonesia’s borrowing costs.
“We also said we want to issue Panda Bonds there, and they strongly agreed. Interest rates in China are low, around 2.3%,” he said.
Access to cheaper funding in China could help Indonesia optimise its debt profile while diversifying its investor base beyond traditional markets.
Deepening financial alignment
The discussions reflect the strength of Indonesia–China economic ties, with China remaining Indonesia’s largest trading partner. Beyond trade, both sides appear increasingly aligned in expanding financial cooperation.
“China is our largest trading partner, so the discussions were very positive. I believe our relationship in international trade will remain strong going forward,” Purbaya said.
The potential cross-border bond issuance would mark a new phase in bilateral engagement, extending cooperation from trade and investment into capital markets.
Strategic signalling to global investors
Purbaya added that the development was also communicated to investors in the United States as part of Indonesia’s broader financial diplomacy.
By signalling access to alternative funding sources, Jakarta aims to strengthen its negotiating leverage and secure more competitive financing terms.
“In more diplomatic terms, if one party is not interested, others are. The terms can even be more favourable, that’s how we negotiate,” he said, adding that the announcement had already led to a noticeable increase in investor interest.