Government Increases Investment in Three International Institutions
Finance Minister Purbaya Yudhi Sadewa has increased government investment in three international financial institutions, namely the Islamic Development Bank (IsDB), the United Nations’ International Fund for Agricultural Development (IFAD), and the World Bank’s International Development Association (IDA). The additional investment was stipulated in Minister of Finance Regulation (PMK) Number 42 of 2026, which came into effect on 24 June 2026 and applies to the 2026 fiscal year.
The value of the additional government investment is detailed in Article 4. For the Islamic Development Bank, the increase amounts to Rp 1.69 trillion, equivalent to 75.86 million Islamic Dinars, paid in cash. This follows a previous government investment in the institution valued at Rp 1.53 trillion, or US$101.59 million, as stated in PMK 35/2025. For the International Fund for Agricultural Development, the additional investment is Rp 49.50 billion, equivalent to US$3 million, in cash, compared to a previous PMK value of Rp 45.30 billion, also equivalent to US$3 million. For the International Development Association, the increase is Rp 220.27 billion, equivalent to US$13.35 million, in cash, up from Rp 188.75 billion or US$12.5 million in PMK 35/2025.
Article 5 of PMK 42/2025 states that the additional investment in the Islamic Development Bank is for the payment of the fourth general capital increase, the sixth general capital increase, and a special capital increase. The additional investment in IFAD is for the thirteenth replenishment of resources, while the IDA increase covers the nineteenth, twentieth, and twenty-first replenishments. The regulation also notes that the additional government investment may exceed the stipulated values if caused by exchange rate differences, as governed by the law on the current year’s state budget. The execution of the additional investment is carried out by the Director of Multilateral Cooperation and Sustainable Finance at the Directorate General of Financial Sector Stability and Development, acting as the Budget User Authority for the State General Treasurer’s Investment Sub-budget.