Purbaya Issues Regulation on Use of Indonesia's International Aid Endowment Fund
Finance Minister Purbaya Yudhi Sadewa has issued a new Ministerial Finance Regulation (PMK) concerning the utilisation of investment returns from the International Development Cooperation Fund, or endowment fund.
The new regulation is PMK Number 53 of 2026 on the Procedures for Managing the International Development Cooperation Fund, and it took effect on 29 July 2026.
Under Article 17 of the PMK, the investment returns on the International Development Cooperation Fund (Dana KPI) may be used to support the services of the International Development Cooperation Fund Institution (LDKPI).
“The returns on the Dana KPI as referred to in Articles 13 and 14 shall be used to support LDKPI’s services, namely providing grants to Foreign Governments/Foreign Institutions in line with LDKPI’s duties and functions, funding LDKPI’s operational activities, and/or carrying out other assignments in accordance with prevailing laws and regulations,” reads Article 17, quoted on Monday (3/8/2026).
Should cash balances remain after these needs are met, LDKPI is permitted to use them for cash optimisation or to add to the International Development Cooperation Fund as an endowment fund.
Beyond governing the use of investment returns, PMK Number 53 of 2026 also regulates the management of the International Development Cooperation Fund comprehensively.
Its scope covers planning, allocation, disbursement, investment, fund administration, accountability and oversight of fund management, as well as the management information system.
Article 3 of the regulation states that the International Development Cooperation Fund may be sourced from government investment financing, LDKPI cash balances, and other lawful sources in accordance with prevailing laws and regulations.
The funds are then developed through the government investment mechanism, with reference to the annual investment plan, medium- and long-term plans, and government investment policy.
The issuance of this PMK complements the existing rules on LDKPI previously set out in PMK Number 143/PMK.01/2019.
That earlier regulation governed the position, duties, functions and organisational structure of LDKPI as the managing unit for international development cooperation funds, but did not regulate in detail the procedures for managing the funds or utilising the returns on the endowment fund.
PMK Number 53 of 2026 introduces several new provisions, including that the management of the International Development Cooperation Fund by LDKPI must be carried out with good governance, in line with the institution’s mandate as the unit managing the provision of grants to foreign governments and foreign institutions.