ASEAN Welcomes ADB Proposal to Establish Special Fund Worth Rp512 Trillion

Jakarta (ANTARA) - The Association of Southeast Asian Nations (ASEAN) has welcomed the Asian Development Bank’s (ADB) proposal to establish a special facility for ASEAN valued at US$30 billion (Rp512.6 trillion) for the years 2026-2030. According to a joint statement from the 13th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (13th AFMGM) on Saturday, the facility is intended to support the implementation of the ASEAN Financial Sector Plan 2026-2030 and the ASEAN Community Vision (ACV) 2045 for a “Resilient, Innovative, Dynamic, and People-Centred ASEAN”. In addition to supporting the ASEAN Community Vision 2045, the facility will also be used to build a prosperous, inclusive, and sustainable ASEAN, with a focus on sustainability, digital transformation, and regional resilience in the face of geopolitical challenges, pandemics, and disasters. “We underscore that access to this facility will be led by member countries and aligned with each member country’s national development plans, debt sustainability frameworks, and public financial management systems, and will avoid creating undue debt vulnerabilities,” the statement quoted. Furthermore, the statement mentioned that the ASEAN Infrastructure Fund (AIF) will mobilise more resources to meet the region’s infrastructure development needs through strong lending channels in 2026-2030, covering 30 regional projects worth US$19.4 billion (Rp331.5 trillion). “We also welcome the launch of the Regional Connectivity Fund (RCF) for Energy to support project preparation for the ASEAN Power Grid (APG) and the engagement of the Asian Infrastructure Investment Bank (AIIB) to further enhance the visibility of the AIF and partnerships with donors and other multilateral development banks,” according to the statement. On 7 April 2026, ADB launched the RCF for Energy in Southeast Asia to finance preparatory work for key projects in energy infrastructure and cross-border transmission within ASEAN to achieve a fully integrated ASEAN Power Grid operation by 2045. The RCF will accelerate project preparation by providing technical assistance and project readiness financing grants to support energy infrastructure projects, including feasibility studies, engineering design, financial structuring, and safeguards assessments. The fund, managed by ADB, will also finance activities related to policy advisory, regulatory improvements, capacity building, and knowledge sharing to enhance the enabling environment for the ASEAN Power Grid. In April 2025, ADB committed up to US$10 billion (Rp170.8 trillion) over the next 10 years for the ASEAN Power Grid and related investments to accelerate cross-border electricity connections, national grid projects, and renewable energy initiatives that will facilitate energy trade.