Indonesia Secures Rp304 Trillion Funding Commitment from AIIB, Reveals Project Pipeline
The Ministry of Finance has detailed several projects underpinning a funding commitment from the Asian Infrastructure Investment Bank (AIIB), secured by Finance Minister Purbaya Yudhi Sadewa. Acting Director General of Financial Sector Stability and Development, Herman Saheruddin, stated that eight projects are included in the National Strategic Projects (PSN), one of which relates to food self-sufficiency. “There are already 8 PSN projects. But the derivative projects will be handed over to the respective ministries/agencies and colleagues at Danantara, who specialise in that area,” Herman said at his office on Thursday (25/6/2026).
Among the eight PSNs, one is in the food sector to support the national priority programme of food self-sufficiency. “Of the 8 PSNs, one is clearly in the food sector. Why is the food sector important? There is a priority programme for food self-sufficiency,” Herman explained. In addition to the food sector, the energy sector is also included in the AIIB financing. “Another is the energy sector, because energy security is most important. Fossil fuels will certainly run out if used continuously,” he clarified.
Herman emphasised that AIIB funding will not increase Indonesia’s debt, as a commitment exists between the AIIB and the Ministry of Finance. “So the AIIB financing is clearly used for strategic projects. The project must exist first, then it can be committed, so it does not directly add to our debt, because there is a sort of commitment,” he said.
Indonesia previously secured a funding commitment of approximately US17billion, oraroundRp304.55trillion(assuminganexchangerateofRp17, 915perUS), from the AIIB to support various national development projects during the 2025-2029 period. This commitment was a key outcome of a bilateral meeting between Finance Minister Purbaya Yudhi Sadewa and AIIB leadership in Beijing, China. The funding support is expected to strengthen national development financing capacity and accelerate the implementation of various government strategic projects.
“The most important thing is that we managed to secure funding of around US$17 billion for development projects in Indonesia between 2025 and 2029. This is a very significant contribution to financing development projects in Indonesia,” Purbaya said after the meeting at the AIIB Office. Purbaya explained that the funding is part of a Multi-Year Rolling Pipeline discussed with the AIIB. Although some programmes were previously designed, the Indonesian Government successfully ensured the continuity of the funding commitment from the multilateral institution to support the national development agenda in the coming years.
In addition to financing support, Indonesia also received a positive signal regarding AIIB’s expansion plans in the country. The AIIB expressed interest in opening a representative office in Jakarta to strengthen cooperation and improve coordination effectiveness for AIIB-supported projects. “AIIB is also interested in establishing a branch office in Jakarta. We certainly welcome this intention, and I hope the office will be established by June next year,” Purbaya said. The presence of an AIIB office in Jakarta is expected to further strengthen the strategic partnership between Indonesia and the AIIB, while facilitating coordination in the implementation of various development programmes receiving funding support from the institution.