The latest funding for the Indonesia Investment Authority (INA) comprises Rp 15 trillion in state capital injection (PMN) from this year’s state budget and Rp 45 trillion in equity from Bank Mandiri and Bank Rakyat Indonesia (BRI).

The injection reduces the government’s stakes in the two state-owned lenders to 52 percent each from previously 60 percent shares in Mandiri to and 56.75 percent in BRI, according to the publicly listed lenders’ reports.

Government regulations Nos. 110 and 111 of 2021, both issued on Oct. 29, finalize the funding following a prior regulation that allowed INA to receive government shares in state-owned enterprises and then sell them to raise money.

The capital injection is part of the government’s commitment to inject Rp 75 trillion into INA this year to help finance big infrastructure, tourism and technology projects, including the planned relocation of the country’s capital city to East Kalimantan.

“In terms of funding, this is not much, but the [investment] risks are there and those need to be minimized,” Mohammad Faisal, the director of the Center of Reform on Economics (CORE) Indonesia, said on Monday.

He also mentioned the government’s recent decision to use the state budget to finance the Jakarta-Bandung high-speed rail project.

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