Jakarta, Indonesia, June 19, 2014
—IFC, a member of the World Bank Group, together with Standard Chartered Bank and Deutsche Bank, today agreed to provide loans of $250 million to PT Indonesia Infrastructure Finance, an infrastructure financing company. The financing will increase IIF’s access to long-term funding to help improve Indonesia’s infrastructure, spur economic growth, and create jobs.
IIF was established in 2010 as part of the development strategy of the Indonesian government and multilateral agencies to address private capital constraints in Indonesia’s infrastructure sector. IIF has invested in toll roads, telecom towers, hydropower, and gas-fired power plants with total commitments to date of $204 million, which are expected to rise to $377 million by the end of this year.
“This is our first commercial debt financing with a long-term maturity structure, which is particularly scarce in Indonesia amid volatile international market conditions,” said Mr. Sukatmo Padmosukarso, President Director Chief Executive Officer of IIF. “The financing is a big boost to our Company’s infrastructure investments and helps diversify our funding base.”
“IFC’s financing for IIF complements the investments we make directly into infrastructure projects in Indonesia and underlines our strategy to support sustainable infrastructure and green growth in East Asia Pacific,” said IFC Indonesia Country Manager Sarvesh Suri.
Indonesia’s infrastructure investment stands at only 3 percent of its gross domestic product, far below India’s 7.5 percent and China’s 10 percent. In 2012, about 30 percent of Indonesia’s population had no access to reliable electric power – one of the lowest penetration rates of electricity supply in Southeast Asia – and more than half of the population has no access to safe water. Insufficient infrastructure investment has slowed the development of Indonesia’s economy.
Global Head of Financial Institutions Standard Chartered Bank, Peter Heidinger said, “Standard Chartered has been in Indonesia for more than 150 years. In line with our brand promise -Here for good, we are proud for being able to contribute to the development of infrastructure projects in Indonesia through IIF which we have worked with since 2012. This loan facility is an extension of our commitment to support the various requirements of IIF and the related stakeholders including the Indonesian government under the Public Private Partnership model.”
Meanwhile, Managing Director and Head of Loan Trading and Syndication, Asia, at Deutsche Bank. Amit Khattar said, “Deutsche Bank is pleased to support this key development in Indonesia’s infrastructure sector and the critical role that IIF will play in financing key projects.”
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
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About Standard Chartered Bank
Standard Chartered is a leading international banking group. It has operated for over 150 years in some of the world's most dynamic markets and earns around 90 per cent of its income and profits in Asia, Africa and the Middle East. This geographic focus and commitment to developing deep relationships with clients and customers has driven the Bank’s growth in recent years. Standard Chartered PLC is listed on the London and Hong Kong stock exchanges as well as the Bombay and National Stock Exchanges in India.
As one of the oldest banks in Indonesia, Standard Chartered Bank has 150 years of operations dating back to 1863. With 27 branch offices in eight major cities in Indonesia, including Jakarta, Bandung, Semarang, Surabaya, Denpasar, Medan, Palembang and Makassar and a network of over 50,000 shared ATMs, the Bank is one of the international banks with the widest geographical footprint in Indonesia. For further information please visit
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About Indonesia Infrastructure Finance
PT Indonesia Infrastructure Finance (“PT IIF”) is a private non-bank financial institution under the Ministry of Finance of the Republic of Indonesia, Regulation (PMK) No. 100/2009, professionally managed, with a focus on investing in commercially feasible infrastructure projects. The establishment of PT IIF is one of the key elements in the strategic initiatives by Government of Indonesia partnering with international financial institution and to fill the gap in the institutional landscape for infrastructure development and finance in Indonesia.
As a commercially oriented entity, PT IIF provides fund-based products such as long term loans, mezzanine and equity investment, non-fund based products such as guarantees
,
as well as fee-based services for infrastructure projects.
