Purbaya Disburses Rp 1.96 Trillion to Three Global Financial Institutions

Finance Minister Purbaya Yudhi Sadewa has increased the government’s investment in three international financial institutions (IFIs) by a total of Rp 1.96 trillion. The additional investment funds are sourced from the 2026 State Revenue and Expenditure Budget (APBN). This is stipulated in Minister of Finance Regulation (PMK) Number 42 of 2026 concerning the Addition of Government Investment of the Republic of Indonesia in International Financial Institutions for the 2026 Fiscal Year. The regulation has been in effect since its enactment on 24 June 2026. “Government investment is the placement of a number of funds and/or financial assets in the long term for investment in the form of shares, debt securities and/or direct investment to obtain economic, social and/or other benefits for the greatest prosperity of the people,” reads Article 1 paragraph (2) of the regulation. The first IFI is the Islamic Development Bank (IDB), with an additional investment of Rp 1.69 trillion, equivalent to US$75.86 million, in the form of a cash payment. These funds are used for the payment of the fourth general capital increase, the sixth general capital increase, and a special capital increase. The second IFI is the International Fund for Agricultural Development, with an additional investment value of Rp 49.50 billion, equivalent to US$3 million, in the form of a cash payment. These funds are used for the thirteenth capital increase. The third IFI is the International Development Association, with an additional investment of Rp 220.27 billion, equivalent to US$13.35 million, in the form of a cash payment. These funds are used for the nineteenth, twentieth, and twenty-first capital increases. The implementation of the additional government investment in the IFIs is carried out by the Director of Multilateral Cooperation and Sustainable Finance, Directorate General of Financial Sector Stability and Development, as the Budget User Authority for the State General Treasurer Investment Budget Sub-section, in accordance with statutory provisions. “The addition of government investment in IFIs may exceed the value as long as it is caused by exchange rate differences, as regulated in the law concerning the current year’s state revenue and expenditure budget,” reads Article 7.