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ADB to Allocate IDR 45.4 Trillion for Indonesia in 2026, Here's the Project List

| Source: CNBC Translated from Indonesian | Economy
ADB to Allocate IDR 45.4 Trillion for Indonesia in 2026, Here's the Project List
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ADB to Allocate IDR 45.4 Trillion for Indonesia in 2026, Here’s the Project List

Jakarta, CNBC Indonesia - The Asian Development Bank (ADB) has prepared a series of funding initiatives for key projects in Indonesia. The total value of these projects, which are currently in the pipeline, amounts to US2.7billion, equivalenttoIDR45.40trillion(exchangerateofIDR16, 816perUS).

“We maintain close alignment with the government’s vision, so beyond financing, we also provide knowledge, policy advice, and long-term partnerships to achieve the 2045 Golden Indonesia Vision,” said ADB’s Director for Indonesia, Bobur Alimov, at the ADB Indonesia Media Mixer in Jakarta on Wednesday (February 25, 2025).

The series of ADB’s key projects for Indonesia in 2026, with an indicative value of US$2.7 billion, are aimed at supporting policy reforms, including deepening the financial sector, improving regional governance, enhancing water resilience, promoting a sustainable energy transition, and protecting marine resources.

“ADB is proud to have partnered with Indonesia as a trusted partner for almost 60 years, reflecting a deep understanding of local wisdom and a shared commitment to the future,” Bobur emphasized.

Compared to last year, this indicative funding is higher, as in 2025, ADB had committed US$2.4 billion to Indonesia in the form of government-guaranteed loans. Meanwhile, ADB’s private sector operations (which are not government-guaranteed) committed US$150 million in 2025.

The commitments made last year were also aimed at supporting policy reforms, accelerating trade, increasing productivity through human capital development programs, including health and education, and promoting a sustainable energy transition.

In the medium term, or over the next five years, ADB’s 2025-2026 funding program, which is aligned with the Indonesian Government’s RPJMN (National Medium-Term Development Plan), will focus on three strategic pillars: investing in people, advancing economic competitiveness, and enhancing resilience and sustainability.

These three pillars are supported by a number of cross-cutting priorities, including empowering women and promoting social inclusion, digitalization, stronger governance and institutions, and regional cooperation and integration.

On the first pillar, ADB will invest in skills, health, nutrition, and social protection to improve the well-being of the Indonesian people and ensure that demographic dividends drive inclusive growth.

ADB will help strengthen healthcare and nutrition for mothers, children, and the elderly; build the skills of the workforce to meet industry needs; expand access to quality education; and support efforts to make social protection systems more effective, adaptable, and responsive.

The second pillar will support accelerating economic growth and creating high-quality jobs by improving the business and investment environment, while maintaining fiscal sustainability. ADB will support reforms that strengthen the business climate to promote trade, investment, and entrepreneurship.

This will also help deepen financial markets, mobilize green finance, and expand financial inclusion. Infrastructure gaps will also be addressed through investments in transportation, urban mobility, inter-island connectivity, and digital infrastructure.

The third pillar aims to build Indonesia’s resilience in energy, water, and food. ADB will support Indonesia’s clean energy transition, promote renewable energy, and modernize the electricity grid, including through the ASEAN Power Grid.

This will help address food insecurity, accelerate rural development, and support the goals of the national free nutritious food program by increasing agricultural productivity, investing in irrigation, and strengthening distribution, logistics, and market access.

Since 1966, Bobur said, ADB has partnered with Indonesia to strengthen infrastructure, agriculture, and human capital development. This partnership is underpinned by Indonesia’s strategic position as a founding member of ADB and its sixth-largest shareholder, with a 5.43% stake out of 69 members and holding 4.63% of the voting rights.

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