JAKARTA - PT Indonesia Infrastructure Finance (IIF) emphasized government initiatives, market liquidity, and ESG discipline as key factors for increasing infrastructure investment in the APLMA Loan Market Conference Indonesia 2026 in Jakarta last week on Thursday, April 16, 2026.
President Director and CEO of IIF, Rizki Pribadi Hasan, said that Indonesia is in the right position to accelerate infrastructure development through a coordinated special financial institution ecosystem.
Speaking at the session "Driving Investment in Infrastructure through Government Initiatives", Rizki explained that IIF is a non-bank financial institution established 16 years ago by the Indonesian Government together with 4 leading international institutions to catalyze infrastructure development.
"Our mandate is to complement, not compete with, the banking and capital markets industries," he said.
Rizki explained that over the past 20 years, the Government has built a network of special institutions to support economic growth. Together with several institutions, IIF has collectively financed more than 150 infrastructure projects in various sectors over the past 16 years.
In line with the importance of scale, the Government then formed two sovereign wealth funds, with the latest also acting as a super holding of SOEs and investors in government priority programs. All of these institutions collaborate closely.
Regarding market conditions, Rizki noted adequate domestic liquidity, with a loan-to-deposit ratio of around 80% and a pension fund and insurance company base that continues to grow in search of long-term assets.
"IIF supports the industry through early stage financing and take-out financing, and has pioneered capital market instruments including green perpetual notes, credit enhanced bonds, and long-term bonds. The government, through one of the SWFs, has also issued instruments that serve as blended finance mechanisms. We hope that more innovations will come," he added.
Rizki closed by emphasizing two factors of success that cannot be negotiated: "Competitive pricing and ESG discipline. At IIF, we have spent the last five years systematically lowering the cost of funds and enforcing strict environmental and social standards in every project we finance."
In the same week, IIF signed a loan agreement with a private company for its project in the health sector, reflecting IIF's efforts and commitment to strengthening health resilience through the development of social infrastructure, one of the national priority programs.
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