The US and Indonesian governments have signed the Indonesia Infrastructure and Finance Compact, a $698m, five-year agreement to improve infrastructure finance and support SMEs.

The Indonesian Minister of Finance and the US Secretary of the Treasury have signed a five-year agreement known as the Indonesia Infrastructure and Finance Compact. The deal involves contributions of $649m from the United States and $49m from Indonesia, and is designed to improve access to finance for transport and logistics infrastructure and micro, small, and medium enterprises (MSMEs). Nearly 97% of Indonesia’s workforce are employed by MSMEs, which also contribute around 57% of the nation’s GDP. The signing ceremony was held in Washington DC with representatives from both countries present. The Compact also supports Indonesia’s Just Energy Transition Partnership, climate-resilient infrastructure development, and meets the standards under the Partnership for Global Infrastructure and Investment (PGII).