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IFC Committed More Than $500 Million to Support Private Sector Development in Indonesia

Jakarta, Indonesia, August 12, 2011 —IFC, a member of the World Bank Group, has committed more than $500 million of investments in Indonesia during fiscal year 2011, helping expand access to financial services for millions of Indonesians, fight climate change, and develop vital infrastructure.
IFC worked with Perusahaan Listrik Negara, the state-owned power utility, to mobilize private investments to build, operate, and own the Central Java Power Project, which will generate 2,000 megawatts of electricity and benefit nearly 8 million people. It was the first project put out to tender under Indonesia’s new public-private partnership law.
IFC also helped Indonesian banks develop financing products to support women entrepreneurs, particularly those in rural areas, and energy-efficiency projects. IFC worked with Jakarta’s city government to reduce carbon emissions from public buildings by developing energy and water-efficiency regulations, and to ease business start-up by simplifying registration and licensing procedures and establishing one-stop shops.
“Our investment and advisory projects in fiscal year 2011 underline our commitment to increase the role of the private sector to reduce the impact of climate change, increase rural incomes, and promote sustainable urbanization,” said Adam Sack, IFC Country Manager for Indonesia. “We will continue to focus our investments and advice to extend the reach of infrastructure, increase access to finance, and scale up our sustainable agriculture and forestry program.”
In East Asia and the Pacific, IFC’s new investment commitments totaled $2.8 billion across 69 projects, a 16 percent increase from $2.4 billion in the year before. With those investments, we expect to support 72,000 jobs, reach 157,000 farmers, and facilitate loans to micro, small, and medium enterprises worth around $12.3 billion.
Newly appointed Director for East Asia and the Pacific Sérgio Pimenta said, “Accelerating infrastructure development and empowering more micro, small, and medium enterprises to grow are key to sustainable private sector-led economic development in Indonesia and across East Asia and the Pacific. IFC will continue to work with our government and private sector partners to reduce poverty, create jobs, and support economic growth.”
Pimenta directs advisory and investment operations in East Asia and the Pacific and oversees more than 300 staff across 13 countries.
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, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit www.ifc.org .
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