Indonesia Increases Investment by IDR1.9 Trillion to Three International Institutions

STATE BUDGET - JAKARTA Finance Minister Sri Mulyani has increased investment in three International Financial Institutions (IFIs) this year.

The investment increase is stipulated in the Minister of Finance Regulation (PMK) Number 161 of 2023 concerning the Increase of the Government of the Republic of Indonesia's Investment in International Financial Institutions for the 2024 Fiscal Year.

Through PMK 161/2023, Sri Mulyani stated that the investment increase in these three IFIs comes from the 2024 State Budget. This policy was also issued to implement the provisions of Article 32 paragraph (3) of Law Number 19 of 2023 concerning the 2024 Fiscal Year State Budget.

"The government's investment increase as referred to (...) comes from the 2024 Fiscal Year State Budget," reads Article 3 paragraph (5) of the policy, quoted on Tuesday (9/1).

Now, this government investment increase will be made to three International Financial Institutions with a total value reaching IDR 1.9 trillion, where Indonesia is a member of these institutions. The three International Financial Institutions are as follows:

First, the Islamic Development Bank (IDB) is worth IDR 1.53 trillion or equivalent to US$ 102.76 million in cash payments. The details are US$ 5.41 million for the payment of the fourth general share increase, then US$ 12.04 million for the payment of the sixth general share increase, and US$ 85.30 million for the payment of the special share increase.

Second, the International Fund for Agricultural Development (IFAD) is worth IDR 59.6 billion, or equivalent to US$ 4 million in cash payments. The value of this investment increase will be made for the twelfth share increase.

Third, the International Development Association (IDC) is worth IDR 316.33 billion in cash payments. This consists of IDR 144.98 billion for the eighteenth share increase and IDR 171.35 billion for the nineteenth and twentieth share increases.

It is stated, that the implementation of the government's investment increase in these International Financial Institutions is carried out by the Head of the Center for Climate Change Financing Policy and Multilateral, Fiscal Policy Agency, as the Power User of the State Treasurer's Budget Subsection Government Investment under the provisions of the legislation.

The value of the government's investment increase in these International Financial Institutions can exceed the value as long as it is caused by exchange rate differences, as regulated in the Law concerning the current year's State Budget.

"The definitive value of the government's investment increase in the International Financial Institutions as referred to (...) is determined by the Minister of Finance's Decision after the implementation of the government's investment increase," reads Article 8 of the policy.