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IFC Invested about $300 Million in Indonesia Last Fiscal Year to Support Private Sector Development

Jakarta, Indonesia, October 9, 2012 —IFC, a member of the World Bank Group, made investments of close to $300 million in eight projects and spent almost $7 million on advisory projects in Indonesia during fiscal year 2012, expanding access to financial services for millions of Indonesians, developing vital infrastructure, improving corporate practices, and fighting climate change.
“IFC’s investment and advisory work showed our commitment to strengthening the private sector in Indonesia to help increase rural incomes, reduce the impact of climate change and promote sustainable urbanization,” said IFC country manager for Indonesia, Sarvesh Suri. “Going forward, we will scale up our work in infrastructure, provide greater access to finance to the underserved, especially women entrepreneurs and farmers, and promote sustainable agribusiness and forestry practices.”
During the fiscal year that ended June 30, 2012, IFC acquired an approximately 11 percent ownership interest in PT Medco Power Indonesia to provide cleaner electricity through natural gas and hydropower to more than 2 million residential customers in Indonesia.
Support for small and medium enterprises was a particular focus last fiscal year. IFC invested $25 million in an Indonesia-focused private equity fund managed by Falcon House Capital Management Ltd. to support Indonesia’s medium-sized companies. IFC increased its equity investment in PT Bank Hana to help expand banking products and services for small and medium enterprises to allow them to grow. We also converted our convertible loan of about $15 million in Bank BTPN and became a 3 percent owner of the bank.
IFC together with ECOM, an international coffee trader, opened a training center in Simalungun, North Sumatra, to help coffee farmers develop their farming techniques, increasing productivity and quality and hence raising their incomes. In June 2012, IFC launched a new corporate governance program to help Indonesian companies raise their competitiveness and attract new investors by improving transparency in their operations.
Across the East Asia and the Pacific region, IFC’s investments reached a record $2.9 billion in 71 projects during fiscal year 2012. IFC also expanded its presence in the region by opening new offices in Singapore and Myanmar.
“East Asia and the Pacific is a region that is critically important to the health of the global economy and Indonesia plays a key role within the region,” said Rashad Kaldany, IFC’s Vice President for Global Industries. “IFC will continue working with governments and private sector partners to create jobs, reduce poverty, and support economic growth.”
This fiscal year in East Asia and the Pacific, IFC is putting a greater emphasis on strengthening commerce between emerging markets, so-called South-South investments, step-up its efforts to mobilize capital from commercial banks and other financial institutions and increase its financing and advice for climate-friendly projects.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org .
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