Jakarta (ANTARA) – Indonesia will officially enter China's onshore debt market with the launch of its inaugural renminbi-denominated Panda Bond on July 23, 2026, Finance Minister Purbaya Yudhi Sadewa announced.The initial issuance will be capped at US$1 billion as the government tests investor appetite in the new market, although Purbaya indicated that larger issuances could follow depending on market demand.”Because this is a new market, we will explore it first,” Purbaya said during the July 2026 State Budget press conference in Jakarta on Tuesday.”Although demand may be very strong, we are limiting the initial issuance to US$1 billion. If necessary, we can return to the market a few months later with a larger issuance,” he added.For the debut offering, the Finance Ministry has appointed Bank of China (BOC) as the lead underwriter and lead bookrunner.Industrial and Commercial Bank of China (ICBC), CITIC, China International Capital Corporation (CICC), and DBS Bank China will serve as joint lead underwriters and joint bookrunners.Meanwhile, Agricultural Bank of China (ABC), China Construction Bank (CCB), and the Export-Import Bank of China (China Exim Bank) have been appointed as co-managers.Purbaya said Chinese credit rating agency China Lianhe Rating Co., Ltd. assigned the bond a AAA rating with a stable outlook on July 1, 2026.According to him, the top-tier rating reflects Indonesia's resilient economic growth, which has remained above 5 percent since 2022, supported by strong macroeconomic fundamentals, its status as Southeast Asia's largest economy, and its resilience to external shocks.The rating agency also highlighted Indonesia's relatively low external debt, strong debt-servicing capacity supported by adequate foreign exchange reserves, and a prudent government debt-to-GDP ratio maintained at around 40 percent.The issuance is expected to diversify Indonesia's external financing sources while enabling the government to tap into the deep liquidity available in China's domestic capital market.