AIIB to open Indonesia office after securing US$17 billion financing

Jakarta (ANTARA) - The Asian Infrastructure Investment Bank (AIIB) plans to open a representative office in Indonesia, following a massive US$17 billion project financing commitment secured by the government.

Finance Minister Purbaya Yudhi Sadewa announced on Friday that the government will prepare the necessary land and buildings to support the establishment of the multilateral development bank's branch office.

The initiative is one of the key outcomes of Purbaya's official working visit to China, which took place from June 16 to 19, 2026.

"The AIIB wants to open a branch office in Indonesia. If we calculate it, since we are being given a US$17 billion loan, we can certainly provide a branch office,” the minister said during a media briefing in Jakarta on Friday.

“We promised them we would provide land and buildings for them to use, utilizing some of our unused state assets," he added.

Purbaya clarified that the US$17 billion funding commitment is not a conventional state debt instrument.

Instead, it is a dedicated project financing facility intended strictly to support productive, long-term infrastructure developments across the country.

The financing scheme is structured to be utilized in gradual stages until 2029, depending on the readiness and progress of the specific projects proposed by the Indonesian government.

“In essence, I would say it functions like an investment. We deploy the funding for productive projects, but the interest rate is lower than those of regular commercial investors, and the resulting assets remain ours,” Purbaya explained.

The physical presence of an AIIB representative office in Indonesia is expected to streamline communication, accelerate project approval pipelines and optimize the execution of the multi-billion dollar development fund.

Related news: AIIB's US$17 bln funding for Indonesia is regular loan: minister

Translator: Bayu Saputra, Yashinta Difa

Editor: M Razi Rahman

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