AIIB to Open Representative Office in Indonesia, Government Pledges Land and Building

Finance Minister Purbaya Yudhi Sadewa has announced that the Asian Infrastructure Investment Bank (AIIB) plans to open a representative office in Indonesia, prompting the Ministry of Finance to prepare land and a building for the facility. The commitment emerged as one of the outcomes of his working visit to China from 16 to 19 June 2026, during which the government also secured a project financing commitment worth US$17 billion from the AIIB. “AIIB also wants to open a branch office in Indonesia. By my reckoning, if they are giving a US$17 billion loan, we can certainly provide a branch office,” Purbaya stated during a media briefing at the Ministry of Finance in Jakarta on Friday, 26 June 2026. “We promised them we would provide land and a building for their use, as I also have unused assets,” he added. He explained that the US$17 billion funding commitment is not debt in the general sense, but rather project financing aimed at supporting productive projects in Indonesia. The financing scheme can be utilised in stages until 2029, depending on the readiness of projects submitted by the government. “So actually, if I may say, this is like someone investing here; we are attracting investment for productive projects, but the interest rate is lower than that of a typical investor, and the assets become ours. It is available and can be drawn down until 2029,” he remarked. During his recent visit to China, Purbaya not only secured the financing commitment from the AIIB but also held a series of meetings with regulators and investors to finalise plans for issuing renminbi-denominated bonds, known as Panda Bonds. Purbaya noted that interest from Chinese investors in Panda Bonds was far higher than anticipated, prompting the government to consider raising the issuance target above the initial plan of US$1 billion.