Beijing. Finance Minister Purbaya Yudhi Sadewa visited Beijing on Wednesday for talks with Chinese Finance Minister Lan Fo’an as Indonesia advances plans to issue sovereign Panda Bonds, a move aimed at diversifying funding sources and expanding the country’s investor base.

The Indonesian government views the planned bond issuance as a strategic step to broaden access to financing while strengthening economic and financial ties with China. The sovereign Panda Bonds, which would be denominated in Chinese yuan and issued in China’s domestic bond market, are also expected to support the use of local currencies in bilateral transactions and deepen financial cooperation between the two countries.

The working visit is part of Indonesia’s broader effort to strengthen its long-term development financing strategy while expanding partnerships with global investors.

“We came to Beijing not because we are under pressure, but because Indonesia is in a strong position to build mutually beneficial cooperation,” Purbaya said in a statement.

“When economic fundamentals are solid, we have greater room to act strategically and with confidence,” he added.

The minister’s remarks come at a time when the rupiah and Indonesia’s benchmark stock index have yet to fully recover from recent market declines that were deeper than those experienced during the Covid-19 pandemic. Indonesia’s trade surplus has also narrowed to its lowest level in six years, while rising inflation has begun to erode the purchasing power of lower-income households.

Despite those challenges, Purbaya maintained that Indonesia’s economic fundamentals remain strong.

He pointed to the country’s manageable government debt ratio, budget deficit levels that remain within statutory limits, and continued economic growth as evidence of resilience.

Purbaya also argued that investor confidence in Indonesia remains intact.

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

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