Beijing, June 19 -- Indonesia is targeting an initial issuance of US$1 billion in Panda Bonds in China to diversify development financing sources and support rupiah stability, Finance Minister Purbaya Yudhi Sadewa said.

"Our initial target is around US$1 billion, but we will see what the market looks like. If demand is larger, we will increase it," he said in Beijing on Thursday.

Purbaya made the remarks after meetings with Chinese Finance Minister Lan Fo'an, officials from the People's Bank of China (PBOC), representatives of the Asian Infrastructure Investment Bank (AIIB), and investors during his June 16-19 visit to China.

He said support from China's central bank has strengthened prospects for the issuance, with book-building expec...