JAKARTA, INDONESIA, February 14, 2001—
Mr. Peter Woicke, Executive Vice President of the International Finance Corporation is scheduled to visit Jakarta, Feb. 15-16, 2001—the first visit by an IFC chief to Indonesia in ten years.
The purpose of his visit is to discuss current economic conditions and to explore ways in which IFC can assist the economic recovery in Indonesia, particularly in encouraging its private sector.
Mr. Woicke is visiting Indonesia at a critical time in the country’s development. Economic growth has been sustained for two years with the assistance of donor countries but private sector investment is urgently needed to emerge from the economic crisis.
In Indonesia, IFC’s current held portfolio, including participations, is US$844 million as of Dec. 31, 2000. IFC has been involved with several significant corporate restructurings pertaining to portfolio companies—Santika Hotels, Semen Andalas, South Pacific Viscose, Rimba Partikel, Ades Alfindo, and Argo Pantes—and is actively developing a pipeline of projects for new investments. In the financial sector, IFC is promoting a range of new financial instruments including securitization, forfaiting, and trade enhancement facilities. IFC’s assistance to Bank NISP has helped the bank overcome the effects of the economic crisis. IFC has also provided a financial package to Petrosea, one of the largest engineering and construction companies serving the oil, gas, and mining industries.
In Jakarta, Feb. 15 and16, Mr. Woicke will announce two new investments in trade facilities in Indonesia with Standard Chartered Bank and Sumitomo Bank, each for $125 million. The facilities will help stimulate recovery in Indonesia's international trade flows by providing short-term financing to private sector importers who have little access to trade finance from the local banking sector.
Mr. Woicke will also address a conference on SME Lending for Commercial Bankers in Jakarta, Feb. 16. SMEs—a major part of IFC’s activities—are regarded by IFC as a means to generate employment and create wealth by spurring investment in the small business sector. IFC invests in SMEs (directly as well as indirectly through financial intermediaries) and provides technical and advisory services to support their development.
IFC hopes to play an important role in Indonesia’s recovery by helping to spark private sector activity and restore investor confidence. IFC’s activities in the next financial year include investing in export-oriented projects and resource based projects (mining and oil palm) as well as SMEs which create employment, reduce poverty, and provide the engine for sustainable growth.
To brief members of the press, Mr. Woicke will hold a
press conference at 2:30 p.m. on Friday, February 16, 2001
at Jakarta’s Grand Hyatt Hotel, Krakatau Room, 2nd Level. For more information, please call IFC Jakarta (phone: 62-21-5299-3150).
The mission of IFC, part of the World Bank Group, is to promote sustainable private sector investment in developing countries as a way to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses.
