Purbaya Secures Rp 301.8 Trillion in Funding from AIIB, Here Are the Details

Finance Minister Purbaya Yudhi Sadewa has successfully obtained US$17 billion, or around Rp 301.8 trillion (assuming an exchange rate of Rp 17,753 per US dollar), in funding from the Asian Infrastructure Investment Bank (AIIB). Following a meeting with the leadership of the Beijing-based multilateral development bank, Purbaya explained that the funding will be allocated to support various national development projects throughout the 2025-2029 period. “We managed to secure approximately US$17 billion in funding for development projects in Indonesia between 2025 and 2029,” Purbaya said in a statement on Thursday. Purbaya expressed hope that the funding would strengthen the national development financing capacity while accelerating the implementation of various strategic government projects. “This is a very significant contribution to financing development projects in Indonesia,” he stated. During discussions with AIIB leaders, it was explained that the funding is part of a Multi-Year Rolling Pipeline, a multi-year rolling workflow mechanism that has been jointly discussed with the development financing institution. Purbaya said he succeeded in convincing the AIIB that the sustained commitment of this funding would be utilised to support the national development agenda in the coming years, including a number of strategic programmes previously designed by the Indonesian government. Furthermore, Purbaya noted that the AIIB has also given positive signals regarding their expansion plans in Indonesia, even expressing interest in opening a representative office in Jakarta. The aim is to strengthen cooperation and improve the effectiveness of coordination for projects supported through the funding. “The AIIB is also interested in establishing a branch office in Jakarta. We certainly welcome this intention, and I hope that by June next year the office will already be established,” Purbaya said. He added that this funding also reflects the AIIB’s high level of confidence in Indonesia’s fiscal condition. Purbaya confirmed that the AIIB has no concerns regarding Indonesia’s fiscal management, including the future prospects of the national economy. “They have no issues with Indonesia’s fiscal situation. They are confident in our fiscal credibility and creativity,” he remarked. The meeting between Purbaya and the AIIB was part of his working visit to Beijing, which included meetings with Chinese business and financial authorities as well as global investors.