Purbaya Confirms US$17 Billion AIIB Funding is a Standard Loan

Finance Minister Purbaya Yudhi Sadewa has confirmed that US$17 billion in funding from the Asian Infrastructure Investment Bank (AIIB) constitutes a normal loan intended to finance national development during the 2025–2029 period. The statement was made following a meeting with China’s Finance Minister Lan Fo’an, officials from the People’s Bank of China (PBOC), the AIIB, and investors. “The loan is a normal loan routinely provided to other countries at the same rate,” Purbaya stated in Beijing on Thursday evening, 18 June 2026. “We successfully secured a loan commitment of 17 billion dollars until 2029. This means the AIIB has already set aside the funds; it is now up to us whether we wish to utilise them to finance our infrastructure development,” he added. The funding is part of a ‘Multi-Years Rolling Pipeline’ discussed with the AIIB. Although some programmes were previously designed, the Indonesian government managed to ensure the continuity of the funding commitment from the multilateral institution to support the national development agenda in the coming years. Purbaya also noted that the AIIB expressed a desire to establish a branch in Jakarta, to which the government responded positively, suggesting a possible office location in the capital. The Indonesian government will attempt to provide an office for the AIIB in Jakarta, with a preparation target of one year. “The target is June next year; perhaps they can partially relocate and begin working from there,” Purbaya said. The plan to open a representative office is intended to strengthen cooperation and enhance the effectiveness of project coordination supported by the AIIB, further solidifying the strategic partnership between Indonesia and the bank. Purbaya also mentioned that the AIIB maintains a high level of confidence in Indonesia’s fiscal condition, with no concerns raised regarding national fiscal management or the country’s future economic prospects. “They are confident in our fiscal credibility and creativity,” he concluded.