Indonesia’s Finance Minister Suahasil Nazara is strengthening partnerships with international financial institutions and partner countries to expand export financing, increase investment, and support strategic projects in Indonesia (14/10).

The initiative was discussed during a series of bilateral meetings with Thailand, Singapore, the Japan Bank for International Cooperation (JBIC), the World Bank, and the International Finance Corporation (IFC) in Bangkok, Thailand.

Indonesia Investment Strategy Focuses on Export Financing

During a meeting with the IFC, Suahasil discussed cooperation with Indonesia Eximbank, known as Lembaga Pembiayaan Ekspor Indonesia (LPEI), to secure long-term funding and mobilize external financial resources for export financing.

The cooperation aims to strengthen domestic supply chains, particularly in agriculture, manufacturing, logistics, services, and fisheries. The initiative is intended to help Indonesian businesses expand their access to international markets.

The IFC also discussed expanding financing access for micro, small, and medium-sized enterprises (MSMEs) through PNM, OTO Finance, and Amartha. Other priorities include digital financial services and support for women entrepreneurs and rural communities.

To strengthen its presence in Indonesia, the IFC announced plans to relocate several senior positions from Singapore to Jakarta.

Capital market development was another topic discussed during the meeting. Suahasil emphasized the importance of maintaining the credibility of Indonesia’s capital market so that it can serve as a reliable source of financing for the private sector.

Expanding the investor base and developing thematic financing instruments were also identified as ways to create greater opportunities for private capital to support economic activity.

World Bank Supports MSMEs and Development Priorities

Suahasil met with World Bank Vice President for East Asia and the Pacific Carlos Felipe Jaramillo and World Bank Country Director for Indonesia and Timor-Leste Carrie Turk to discuss investment and fiscal management.

The discussions focused on balancing economic growth needs with limited resources and improving the effectiveness of government spending. The meeting addressed the challenges of supporting development priorities while maintaining credible fiscal management.

The World Bank expressed its readiness to support Indonesia’s development priorities, including MSME development through digital financing and the Agricollect initiative in the agricultural sector.

The institution also discussed its involvement in health programs in Indonesia. These areas of cooperation form part of efforts to strengthen business capacity and improve the effectiveness of development initiatives.

JBIC Cooperation Targets Infrastructure and Energy Projects

Infrastructure development and energy resilience were also discussed during Suahasil’s meeting with the governor of JBIC.

The meeting covered financing support for several projects, including a waste-to-energy facility in Legok Nangka, West Java. Suahasil also encouraged JBIC to explore cooperation with PT Sarana Multi Infrastruktur (Persero) for new projects and projects already underway.

The discussions focused on opportunities to strengthen financing cooperation for infrastructure and energy-related development in Indonesia.

Indonesia and Singapore Discuss ASEAN Financial Cooperation

During a meeting with Singapore’s Second Minister for Finance, Indranee Rajah, Suahasil discussed opportunities to strengthen financial cooperation within the Association of Southeast Asian Nations (ASEAN).

The agenda included carbon market development and the use of blended finance to support nature-based solutions. Both sides also discussed strengthening infrastructure and energy connectivity through the ASEAN Power Grid.

The two officials exchanged views on the use of artificial intelligence and digitalization as part of their discussions on regional cooperation.

The meetings in Bangkok covered financing access, private-sector investment, MSME development, infrastructure, energy, and financial cooperation across ASEAN as Indonesia sought to strengthen its partnerships with other countries and international financial institutions.

PHOTO: MINISTRY OF FINANCE

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