The finance minister says Jakarta could become AIIB’s ASEAN hub as Indonesia offers office space and targets operations by next June.
Finance Minister Purbaya Yudhi Sadewa said the Asian Infrastructure Investment Bank (AIIB) plans to open a branch office in Indonesia after committing US$17 billion (around Rp303.16 trillion, assuming an exchange rate of Rp17,833 per US$1) to finance development projects across the country through 2029.
“If I calculate it, if they are willing to provide US$17 billion, then it’s reasonable for us to provide a branch office. We have promised to provide land and buildings for them to use,” Purbaya said, on Friday, June 26, 2026.
The Indonesian government has offered to provide land and buildings owned by the Finance Ministry to accommodate the lender’s Jakarta office, with operations targeted to begin in June next year.
“I also have assets that are not being used. It’s fine if they have a branch office here, so ASEAN can be served from Jakarta,” Purbaya said.
Funding available through 2029
Purbaya emphasized that the US$17 billion (Rp303.16 trillion) commitment is project financing rather than conventional debt, describing it as long-term funding for productive investments at lower borrowing costs than those offered by private investors.
“AIIB is providing US$17 billion. It is not debt; it is actually project financing. I see it as an investment in productive projects here, but with lower interest than ordinary investors, and the assets remain ours. The funding is available until 2029. They said that if the projects are ready, the funds can be disbursed immediately,” he said.
According to Purbaya, the financing can support not only infrastructure but also other commercially viable projects. He said the government has already identified several potential projects, including toll roads in Sumatra, although the overall project pipeline is still being finalized.