Jakarta. Indonesia has yet to open discussions with the China-backed Asia Infrastructure Development Bank on the financing of coal-fired power plants in the country, the Finance Ministry says.
The Jakarta Globe reported last week that Indonesia planned to take a $1 billion loan from the AIIB to develop the country's infrastructure, especially for coal-fired power plants.
Robert Pakpahan, director general of debt management at the Finance Ministry, however, clarified on Friday that no deals have been signed.
"The AIIB is expected to work closely with existing multinational development banks to help narrow the infrastructure gap in the region," Robert said in a statement.
"In this respect, AIIB is expected to be the one of the sources of alternative financing to complement government budget and private sector investment in infrastructure in supporting Indonesia's high and sustainable growth in the future," he said.
Indonesia is a founding member of the AIIB and has pledged to contribute $672 million, making it the eighth-largest shareholder.