Jakarta, May 20 (AseanAll) — The Asian Development Bank (ADB) has collaborated with the Ministry of Finance of the Republic of Indonesia to successfully convert 27 sovereign loans amounting to a total of $3.3 billion from US dollars and Japanese yen to Indonesian rupiah. This marks ADB’s first large-scale local currency conversions, setting a precedent for future transactions. It reflects ADB’s broader strategy to support the development of local currency markets in the Asia and Pacific region.
“This successful conversion of Indonesian sovereign loans into local currency is a testament to ADB's commitment to financial innovation and stability in the region, and is the outcome of our long-standing relationship with the Indonesian Ministry of Finance in the area of debt management. By optimizing currency management, we are helping our member countries achieve more sustainable and resilient economic growth," said ADB Vice-President for Finance and Risk Management Roberta Casali.
“With debt conversion, we can lower our financing costs and minimize financial uncertainty, which in turn provides greater fiscal space to address other pressing needs,” said Indonesian Vice Minister of Finance Thomas A.M. Djiwandono.
ADB continues to explore opportunities for local currency financing across the region. The bank's pioneering efforts in issuing local currency bonds and developing derivative markets have significantly advanced local currency financing in Asia and the Pacific. ADB's aggregate local currency portfolio reached more than $5 billion equivalent as of 30 April 2025. Local currency loans constitute more than one-third of private sector outstanding loans and are expected to grow to more than 50% in the coming years.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
