Purbaya Injects Rp1.96 Trillion Investment into Three International Financial Institutions
Finance Minister Purbaya Yudhi Sadewa has officially injected additional government investment amounting to Rp1.96 trillion, sourced from the 2026 State Budget (APBN), into three international financial institutions.
This capital injection was established under Minister of Finance Regulation (PMK) No. 42/2026 concerning the Increase of the Government of the Republic of Indonesia’s Investment in International Financial Institutions for the 2026 Fiscal Year. The new regulation was signed by Purbaya on 15 June 2026 and promulgated on 24 June 2026.
“In order to implement the provisions of Article 32 paragraph (3) of Law No. 17/2025 regarding the 2026 State Budget, it is necessary to establish a Minister of Finance Regulation concerning the Increase of the Government of the Republic of Indonesia’s Investment in International Financial Institutions for the 2026 Fiscal Year,” explained the considerations of PMK 42/2026, as reported on Thursday (25/6/2026).
Article 1 identifies the three institutions targeted for this government investment: the Islamic Development Bank, the International Fund for Agricultural Development, and the International Development Association.
Article 4 details the investment portions for each of the three international institutions. Firstly, the largest portion of additional investment is allocated to the Islamic Development Bank, amounting to Rp1,690,506,244,000, or the equivalent of 75,865,000 Islamic dinars. The cash payment for this institution, based in Saudi Arabia, is split into three primary objectives: payment for the fourth general capital increase of 3,995,000 Islamic dinars, payment for the sixth general capital increase worth 8,895,000 Islamic dinars, and payment for a special capital increase with an allocation of up to 62,975,000 Islamic dinars.
Secondly, the additional investment to the International Fund for Agricultural Development amounts to Rp49,500,000,000, or approximately US$3,000,000. This funding is specifically intended for the thirteenth replenishment of shares in the institution.
Thirdly, the investment in the International Development Association is set at Rp220,275,000,000, or the equivalent of US$13,350,000. This cash investment consists of: the nineteenth replenishment of US$6,000,000, the twentieth replenishment also set at US$6,000,000, and the twenty-first replenishment valued at US$1,350,000.
Article 6 stipulates that the technical execution of these additional government investments will be carried out by the Director of Multilateral Cooperation and Sustainable Finance within the Directorate General of Financial Sector Stability and Development.
Although the PMK has set specific figures, Purbaya has maintained flexibility regarding the definitive value of these additional investments, as regulated in Articles 4 and 7, to anticipate volatility in the Rupiah’s exchange rate against foreign currencies.
“This Ministerial Regulation shall come into force on the date of its promulgation,” concludes Article 9 of PMK 42/2026.