Jakarta, Indonesia, October 15, 2009
—IFC, a member of the World Bank Group, has launched a new five-year strategy for Indonesia designed to reduce the impact of climate change, increase rural incomes, and promote sustainable urbanization. IFC’s overarching goal is to create opportunities and improve the lives of millions of Indonesians.
To achieve its objectives, IFC’s strategy combines investment and advisory services to expand access to financial services to the underserved, increase access to infrastructure, strengthen commodity-based supply chains such as agribusiness and forestry, and improve the investment climate.
“Indonesia’s economy has proved resilient in the face of the global economic crisis, but its development challenges remain significant,” said Adam Sack, IFC Country Manager for Indonesia. “The private sector has an important role to play in addressing these challenges. We designed our country strategy to ensure that we can have a positive impact through private sector development.”
IFC will measure its progress through a five-year plan that seeks to improve the lives of 41 million Indonesians, facilitate about $13 billion in investments, and reduce 180 million tons of carbon dioxide-equivalent of greenhouse gasses. IFC’s investments will reach $300 million to $400 million annually focusing on long-term financing, risk sharing, and equity.
Examples of IFC’s projects are energy efficiency finance and warehouse receipts. IFC will assist banks in identifying and assessing the risks of energy efficiency and renewable energy projects, and help develop a system to enable farmers and other agribusiness players obtain credit from formal financial institutions by using commodities as collateral. IFC also will support key financial institutions that will massively scale up access to financial services for the underserved.
As of June 30, 2009, IFC had committed a total of $968 million in Indonesia. Most of these investments are in financial markets, followed by agribusiness and manufacturing. In addition, IFC has partnered with the Indonesian government to implement a series of reforms in business regulations, including reforms that reduced the number of days and steps to register a business, from 151 days and 12 steps in 2005 to 60 days and 9 steps as recorded in
Doing Business 2010
.
IFC Advisory Services in Indonesia are supported by the governments of Australia, the Netherlands, New Zealand, and Switzerland.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
