OJK Clarifies Status of Panda Bonds and Patriot Bonds

Indonesia's Financial Services Authority (OJK) has provided clarification regarding the issuance and administrative status of Panda Bonds and Patriot Bonds, both government debt instruments.

Hasan Fawzi, the OJK's Chief Executive Supervisor for Capital Markets, Derivative Finance, and Carbon Exchange, stated that Panda Bonds, which are denominated in China's Yuan or Renminbi, are exempt from standard OJK registration procedures. "The issuance of Panda Bonds by the Government of the Republic of Indonesia does not require the submission of a Registration Statement document to the OJK," Fawzi explained in a written response.

In contrast to Panda Bonds, the issuance documents for Patriot Bonds, facilitated by PT Danantara Investment Management (DIM), are reported and registered with the OJK. Fawzi further detailed that PT DIM has already issued its first series of long-term debt securities (SUJP) for Patriot Bond in 2025, followed by a second issuance in March 2026.

The Panda Bond, launched by the Ministry of Finance on July 23, 2026, was issued in two series with tenors of 3 and 5 years. The proceeds are intended to finance the state budget for the 2026 fiscal year and were offered to the public in China's domestic bond market.

Patriot Bonds, on the other hand, were issued by Danantara through a private placement mechanism. This bond is designed as a collaboration between the government and the private sector, offering tenors of 5 and 7 years. The issuance of these bonds had previously sparked debate, particularly concerning a clause in the revised Law on Financial Sector Development and Strengthening (UU P2SK) that would provide state protection from criminal charges for purchasers of Patriot Bond and Merah Putih Bond.