Jakarta, Indonesia, February 1, 2011
—Lars Thunell, Executive Vice President and CEO of IFC, a member of the World Bank Group, today pledged IFC’s continued support to promote sustainable economic growth and create jobs in Indonesia by helping build infrastructure projects, expand access to finance for smaller enterprises, reduce greenhouse gases, and improve the investment climate.
Thunell has completed a one day visit to Indonesia, where IFC launched the Green Buildings Program to help the DKI Jakarta government develop a green-building code based on international best practices. IFC also signed a $25 million loan and $175 million funding through its syndication program for PT Summit Oto Finance. This investment will make motorcycle financing more widely available to micro and small businesses and low-income households that rely on scooters for business needs and personal transportation, particularly in Indonesia’s poorer provinces.
During his visit, Thunell met with Minister of Finance Agus Martowardoyo. In the meeting, Thunell applauded the Indonesia government for its commitment to accelerating infrastructure development and expressed a desire to continue supporting the government in this crucial sector through public-private partnerships.
“Indonesia has made substantial economic and political progress over the past 12 years. However, economic growth and poverty reduction, while significant, could be even greater,” said Thunell. “IFC is committed to stepping up its activities in the country to support the government and private sector in key areas such as infrastructure development; financing for micro, small, and medium enterprises; climate change; and the investment climate.”
As of January, 2011, IFC’s cumulative investment in Indonesia was $4.1 billion ($2.7 billion for its own account) for 101 projects over 40 years. IFC’s advisory program in Indonesia focuses on access to finance, sustainable business advisory (agribusiness and forestry), improving the investment climate, and supporting public-private partnerships.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit