Indonesia has officially entered the yuan-denominated global bond market with its inaugural issuance of Dim Sum Bonds totaling CNY6 billion (approximately Rp13.2 trillion). This strategic move marks a milestone in the country’s efforts to diversify its sovereign debt portfolio and tap into China’s deep capital markets. With strong investor demand and competitive yields, the issuance reflects growing international confidence in Indonesia’s fiscal management and economic outlook.
Key Facts & Background
- Bond type: Dim Sum Bonds (yuan-denominated sovereign debt issued offshore)
- Total issuance: CNY6 billion (~Rp13.2 trillion at Rp2,200 per yuan)
- Tenors and terms:
- RICNH1030:
- Tenor: 5 years
- Maturity: October 31, 2030
- Coupon & Yield: 2.5%
- Nominal: CNY3.5 billion
- RICNH1035:
- Tenor: 10 years
- Maturity: October 31, 2035
- Coupon & Yield: 2.9%
- Nominal: CNY2.5 billion
- RICNH1030:
- Pricing date: October 23, 2025
- Listing venue: Singapore Exchange Securities Trading Limited (SGX-ST)
- Investor interest: Final orderbook reached CNY18 billion (~Rp39.6 trillion), triple the issuance size
- Yield adjustments:
- 5-year yield lowered by 45 basis points
- 10-year yield lowered by 40 basis points from initial guidance
- Credit ratings:
- Moody’s: Baa2
- S&P: BBB
- Fitch: BBB
- Joint Lead Managers: Bank of China, HSBC, Standard Chartered Bank
- Regulatory format: SEC-registered global bond issuance (Indonesia’s 18th such issuance)
Strategic Insights
Indonesia’s entry into the Dim Sum Bond market is a calculated and forward-looking step in its sovereign debt strategy. By issuing yuan-denominated bonds offshore, the government is not only diversifying its currency exposure but also strengthening financial ties with China—one of its largest trading partners and a key player in global capital markets. This move enhances Indonesia’s access to alternative funding sources and reduces reliance on traditional dollar or euro-denominated instruments.
The robust investor response—an orderbook three times the issuance size—signals strong market confidence in Indonesia’s macroeconomic stability and fiscal discipline. The ability to price the bonds at lower yields than initially guided reflects favorable risk perceptions and high demand, particularly from onshore Chinese investors. This outcome also suggests that Indonesia’s credit profile is well-regarded internationally, supported by stable ratings from major agencies.
From a fiscal management perspective, the Dim Sum Bonds offer several advantages. They provide cost-effective financing for the national budget (APBN), help manage currency risk, and broaden the investor base. The SEC-registered format ensures transparency and compliance with global standards, further enhancing Indonesia’s credibility in international markets.
Strategically, this issuance aligns with Indonesia’s broader efforts to internationalize its financial instruments and deepen capital market integration. It complements other initiatives such as green bonds, sukuk, and retail bond programs, creating a more resilient and diversified debt portfolio. The listing on SGX-ST also boosts visibility among regional investors and reinforces Indonesia’s presence in Asia’s financial hubs.
Looking ahead, the success of this Dim Sum Bond issuance could pave the way for future yuan-denominated offerings, including thematic bonds linked to sustainability, infrastructure, or digital transformation. It also opens opportunities for bilateral financial cooperation, such as currency swaps, cross-border settlements, and joint investment platforms.