Thursday, 19 September 2019

Indonesia Owes Rp13tn to AIIB

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Editor:

Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - The Asian Infrastructure Investment Bank (AIIB), a multilateral financial institution pioneered by China, aims to increase loans facilities disbursement to projects in Indonesia. Luky Eko Wuryanto, Vice President Chief Administration Officer at the AIIB, said that currently Indonesia owes the bank US$950 million or roughly Rp13.48 trillion.

    The amount is expected to increase along with the growing number of infrastructure development projects in the country.

    "Indonesia's loan is approximately almost US$950 million. Indonesia is now the biggest second borrower in AIIB after India, but Indonesia actually has a lot of potential to be submitted to AIIB," he said Friday, August 30.

    Luky added that the inclusion of AIIB in existing projects is also expected to make private investors more comfortable in their involvement in Indonesia's development.

    The of Public Works and Public Housing Ministry, he said, should look at projects that have not been submitted to AIIB—projects that have potentials to obtain financing. However, the AIIB is avoiding dam projects due to their sensitivity related to environment and settlement issues.

    With the addition of projects from Indonesia, AIIB believes they can meet their annual loan disbursement growth target. 

    "The total funds to [debtor] countries is only US$4 billion to US$4.50 billion per year. Our ambition is to lend more, up to US$8billion to US$10 billion," he said.

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