inance Minister Purbaya Yudhi Sadewa has departed for a five-day work visit to China to increase cooperation on bond issuances and local currency transactions (LCT).
As part of the visit scheduled to last from Tuesday to Saturday, Purbaya met his Chinese counterpart, Finance Minister Lan Fo’an, at the latter’s office in Beijing on Wednesday.
He dismissed any impression that the trip signaled helplessness on Jakarta’s part amid concerns over the domestic economy and the exchange value of the rupiah.
“We came to Beijing not out of desperation, but because Indonesia has a strong position to build mutually beneficial cooperation. When the economic foundation is strong, we have room to act more strategically and confidently,” Purbaya was quoted as saying in a statement released after the meeting.
The key agenda point for the visit is to pave the way for the issuance of Indonesian Panda bonds next month, a plan that has been in the cards since 2019.
Panda bonds are renminbi-denominated sovereign bonds issued by non-Chinese entities in mainland China and reflect the renminbi’s global prominence.
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Purbaya said in April the measure was on the table because President Prabowo Subianto wanted a diversification of global financing sources and Panda bonds offered low interest rates.
