The Islamic Development Bank (IsDB) Group has launched a new Member Country Partnership Strategy (MCPS) for Indonesia covering 2026 to 2030, backed by an indicative financing envelope of about US$2.56 billion. It was announced at the Ministry of Finance in Jakarta on 8 October 2026 and focuses on infrastructure and workforce development, according to the IsDB.
The details
The strategy was launched by IsDB Group Chairman Dr Muhammad Al Jasser, Indonesian Finance Minister Suahasil Nazara and Vice Minister of National Development Planning Febrian Ruddyard, representing BAPPENAS. It is aligned with Indonesia’s National Medium-Term Development Plan 2025 to 2029 and the IsDB Group’s Ten-Year Strategic Framework 2026 to 2035.
It has two pillars:
- Infrastructure for connectivity, resilience and industrial upgrading: transport, food resilience and agriculture, sustainable fisheries and the blue economy, and energy security and transition.
- Workforce development: stronger health systems and expanded education and skills.
Islamic finance, climate action and the empowerment of women and youth run across both pillars. The IsDB Group will combine sovereign financing, private sector investment, trade finance, guarantees, insurance, technical assistance and knowledge services.
The relationship is long-standing. Over more than five decades the IsDB Group has approved about US$7.2 billion across roughly 350 operations in Indonesia.
What does “indicative” mean?
The US$2.56 billion is a planning figure, not a single loan or guaranteed sum. Money is approved project by project, depending on readiness and implementation. Indonesia’s Ministry of Finance noted the IsDB’s view that the envelope could grow if projects are executed well.
Why it matters
Indonesia is home to the world’s largest Muslim population and ranks fourth on the Global Islamic Economy Indicator, as covered in our SGIE 2025/26 summary. IsDB financing is the public-sector side of Islamic finance in the country, alongside commercial players such as Bank Syariah Indonesia. For contractors, consultants and Islamic finance providers, the pillars indicate where IsDB-backed projects are likely to come from over the next five years.
What’s next
The next step is preparing individual operations. During Al Jasser’s October 2026 visit, discussions covered projects in health, strategic connectivity and food resilience. Individual approvals will be announced as they pass the IsDB Board.
FAQ
An indicative envelope of about USD 2.56 billion for 2026 to 2030, subject to project approvals.
Transport, agriculture, fisheries, energy, health, education and skills.
Source: Islamic Development Bank, 8 October 2026.
