Indonesia Eyes Investment Gains After Trump–Xi Talks at APEC Summit

Coordinating Minister for Economic Affairs Airlangga Hartarto views the 2025 APEC Summit as a key opportunity for Indonesia to attract regional investment following the meeting between US President Donald Trump and Chinese President Xi Jinping. 

He said the meeting between Trump and Xi in Busan on Thursday, October 30, provided fresh clarity on the direction of tariff policy in the Asia-Pacific region. 

“Indonesia is open to investment from strategic partners in the region. APEC is considered important because President Trump and President Xi Jinping had just met. For Indonesia, the tariff corridor has become clearer,” Airlangga stated on the sidelines of the 2025 APEC Summit in Gyeongju City, South Korea, on Friday. 

He expressed optimism that the face-to-face meeting between Trump and Xi — their first in six years — would help ease the trade tensions that have recently escalated. 

Airlangga also highlighted several trade tariff agreements concluded among APEC member economies, including Malaysia, Cambodia, and South Korea. 

“Korea itself has agreed to 15%, and we must reach that level,” he emphasized. 

He added that he had also met with South Korea’s Minister of Industry, Trade, and Energy, whom President Trump described as one of his toughest negotiating counterparts. 

According to Airlangga, the meeting aimed to enhance economic cooperation and ensure Indonesia’s competitiveness amid shifting trade dynamics following the US–China summit. 

President Xi Jinping reaffirmed his commitment to strengthening the foundation of China–US relations and creating a stable environment for mutual growth. Xi stated that President Trump expressed strong enthusiasm for resolving key regional issues. 

“China has also advocated peaceful dialogue to address major challenges. The world is currently facing many serious problems,” Xi remarked. 

The meeting was part of President Xi’s visit to South Korea to attend the 32nd APEC Summit. 

Source: Antara News 

Indonesia Raises 6 Billion Yuan Through First Dim Sum Bond Issuance 

Indonesia has raised 6 billion yuan (USD 842.34 million) through its first-ever renminbi-denominated bond, known as a dim sum bond, marking the government’s latest move to diversify its funding sources and broaden its global investor base. 

The issuance, conducted on October 23 with settlement on October 31, consisted of two tranches — a five-year 3.5 billion yuan bond with a 2.5% coupon and a ten-year 2.5 billion yuan bond offering 2.9%, below the initial guidance of 2.95% and 3.30%, respectively. 

Total orders reached around 18 billion yuan, or three times the issuance size, according to the Finance Ministry’s Director General of Budget Financing and Risk Management, Suminto. Initial pricing had been suggested at about 45 basis points above market yields for the five-year tranche and 40 basis points for the ten-year tranche. 

“The strong demand came from a broad base of global investors across the US, Europe, and Asia-Pacific, with Asian investors, including those from China, dominating the book,” Suminto said on Wednesday, as quoted by Kontan. 

Proceeds from the bond sale will be used to finance the state budget in line with the government’s prudent debt management strategy. Suminto added that the government would remain “flexible and opportunistic” regarding future issuances, including currency selection, depending on market conditions and funding needs. 

The bonds received credit ratings of Baa2 from Moody’s, BBB from S&P, and BBB from Fitch and are listed on the Singapore Exchange (SGX-ST). Bank of China, HSBC, and Standard Chartered served as joint lead managers for the issuance. 

This marks Indonesia’s first offshore yuan-denominated bond, following previous panda bond issuances in mainland China, broadening its investor reach and strengthening financial ties with Asia’s second-largest economy. Dim sum bonds are renminbi-denominated debt instruments issued outside of Mainland China, while panda bonds are issued by non-Chinese entities within Mainland China. 

The dim sum bond issuance adds to a series of foreign-currency bonds launched this year as Southeast Asia’s largest economy seeks to maintain funding stability amid global market volatility. According to the state budget, the government aims to raise IDR 642.6 trillion (USD 39 billion) this year to cover the fiscal gap between revenue and expenditure. 

Indonesia has issued several foreign-currency bonds in 2025, including dual-currency USD and euro bonds in January and October, Islamic bonds in July, yen-denominated samurai bonds in June, and Australian dollar-denominated kangaroo bonds in August. 

The January issuance consisted of a dual-currency, SEC-registered global bond worth USD 2 billion and 1.4 billion euros (USD 1.63 billion), followed by another issuance in October that raised USD 1.85 billion and 600 million euros. Both offerings attracted strong demand from global investors, with total order books exceeding USD 4.9 billion and 3 billion euros, respectively. 

The government also issued 103.2 billion yen (USD 699 million) in samurai bonds in May and 800 million Australian dollars in kangaroo bonds in August. 

Source: Jakarta Post 

Indonesia to Allow Central Government Loans to Local Authorities and State Firms 

Indonesia has issued new regulations allowing the central government to lend to local authorities and state-owned enterprises (SOEs) to support national development projects. 

According to the regulation, signed last month and published this week, such loans can be issued after considering potential risks and the government’s financial capacity. 

The policy aims to provide cheaper funding for infrastructure and development projects carried out by provincial and district governments, the regulation stated. 

President Prabowo Subianto has reduced the “regional autonomy” transfer funds to local governments in 2026 to IDR 693 trillion (USD 41.82 billion), down 20%, a move that has drawn criticism from regional leaders. 

Local officials said they may need to raise local taxes to cover the shortfall, warning that the decision could trigger public protests. 

Prabowo cut next year’s regional transfers to make fiscal room for priority programs, including his flagship initiative to provide free meals for 83 million children and pregnant women, and to increase defense spending, while keeping the fiscal deficit below the legally mandated ceiling of 3% of GDP. 

Under the new policy, loans will be funded by the central government’s budget, require parliamentary approval, and must have a tenure of more than 12 months. Any loan proposal from local governments must also be approved by their respective regional parliaments. 

Borrowers must demonstrate sound financial performance, and in the case of SOEs, obtain approval from stakeholders. The regulation also stipulates penalties for late payments, to be determined in agreement between the lender and borrower. 

Source: Reuters