JAKARTA - Finance Minister Purbaya Yudhi Sadewa emphasized the commitment to fund 17 billion US dollars from the Asian Infrastructure Investment Bank (AIIB) is not a government debt, but a financing scheme for investment projects in Indonesia.
According to Purbaya, the facility is a project financing aimed at supporting projects with economic value, with lower funding costs than financing from commercial investors.
"AIIB gives 17 billion US dollars, not debt, it is actually a financing project. So, actually if I say this is like people investing here, we start investing in productive projects, but the interest is lower than ordinary investors, and the goods become ours," he said in a press conference, Friday, June 26.
He explained that the funding commitment can be used until 2029 and the disbursement process can be carried out immediately if the government has prepared a project that meets the requirements.
"It is available to be taken until 2029. They said that if the project is there, they will immediately liquidate it," he said.
Regarding the use of funds, Purbaya emphasized that AIIB funding is not only intended for infrastructure projects, but also various other productive projects that provide economic benefits.
"(Not only infrastructure projects), other projects that are profitable. They have said there is a toll road in Sumatra. Later we will look for which projects we need money," he explained.
Purbaya assessed that the facilities from the AIIB can be an alternative source of financing for national development, including when the Nusantara Anagata Daya Investment Management Agency (Danantara) needs additional liquidity to finance investment projects.
"They want to give 17 billion US dollars. That's better. Later, if there are those who don't have money, they can also go through me, I invest through it. So our development is financed like investors come in but we have it in the end. If foreign investors come in, it's because they borrow money there. He pays interest and the goods belong to the investor. So it's profitable, not a loss," he said.
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