Indonesian Political, Business & Finance News

Purbaya: Danantara Can Request AIIB Loans via the Ministry

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Finance

Finance Minister Purbaya Yudhi Sadewa has stated that the Asian Infrastructure Investment Bank (AIIB) will open a branch office in Indonesia. The plan was announced after the AIIB provided a US$17 billion development loan to the Indonesian Government.

"We promised them we would provide land and a building, as I also have unused assets," he said during a press conference at the Ministry of Finance office in Jakarta on Friday, 26 June 2026.

The funding is allocated for the 2025-2029 development period. The AIIB reportedly has no concerns about Indonesia’s fiscal issues and is confident in the credibility of its management.

Purbaya said establishing a branch office in Indonesia would centralise services for Southeast Asia in Jakarta. The AIIB office is expected to begin operations in 2027. "It will be operational by June," he stated.

According to Purbaya, the funds from the AIIB will be used for development projects such as toll roads in Sumatra and others. The Daya Anagata Nusantara Investment Management Agency (BPI Danantara) can also request funding for various projects through the Ministry of Finance.

Development financed by this investor is considered advantageous because the assets remain state-owned. "This is from China, for productive projects only, whether infrastructure or other profitable ventures," he said.

The funding commitment was secured following Purbaya’s recent visit to China to meet various prospective investors. The Indonesian Government is also offering Panda Bonds to financial institutions in the Bamboo Curtain country, with the debt securities issuance targeted for the end of July. This move aims to diversify funding beyond the US dollar, into Chinese renminbi.

View JSON | Print