Indonesia Cautious Over Multilateral Loan Interest Rates

The Indonesian government is increasingly concerned about the high interest rates on loans from multilateral institutions. Indonesia's Finance Minister Sri Mulyani criticized the cost of borrowing from the World Bank, stating that it is significantly more expensive than other Multilateral Development Banks (MDBs). She voiced her criticism during the 2024 International Monetary Fund-World Bank Group Spring Meetings in Washington, DC, held from Apr. 15-20.

"One major point raised by Finance Minister Sri Mulyani is that the World Bank's pricing [cost of borrowing] is too high compared to other MDBs," the finance minister stated on Tuesday, Apr. 23. Sri Mulyani also stressed the need for increased financial capacity for the World Bank and called for greater representation of member interests. She noted that capital increases would strengthen the legitimacy and governance of the World Bank at a time when reliable global institutions are critically needed.