T

he International Finance Corporation (IFC), a member of the World Bank group, plans to invest between US$500 million and $1 billion in Indonesia'€™s private sector in the company'€™s 2013-2014 fiscal year, which began in July.

IFC'€™s country manager for Indonesia, Sarvesh Suri, said in Jakarta on Thursday that in addition to small and medium companies, the agency would also invest in agribusiness, infrastructure and geothermal projects.

'€œWe'€™re looking at 10-12 potential projects this fiscal year in which we will focus on infrastructure and agribusiness as well as geothermal,'€ he said in a press briefing.

In the 2012-2013 fiscal year, which ended in June this year, IFC invested $438 million in Indonesia. About $58 million was invested in infrastructure projects, $44 million in financial markets. The remaining $36 billion went to manufacturing, agribusiness and services companies.

In early August, the IFC agreed to invest $50 million in PT Professional Telekomunikasi Indonesia (Protelindo) to improve mobile network coverage in Indonesia.

Protelindo is the owner and operator of telecommunications towers in Indonesia. At present, the company operates about 9,000 telecommunication towers across the archipelago and rents them out to mobile network operators.

Protelindo will used the IFC investment funds to build more telecommunication towers and provide additional coverage as well as capacity for mobile network operators, such as in the island of Java, Sumatra and Kalimantan.

Aside from providing investment, the IFC will also provide loans to Indonesian companies.

According to the IFC website, a proposed loan by publicly listed producer of candies and cookies PT Mayora Indah Tbk estimated at approximately $170 million is currently awaiting approval. A debt facility worth $75 million to Bank Danamon Indonesia is also currently pending approval.

Speaking at the same event. Karin Finkelston, IFC vice president for Asia and the Pacific, said the infrastructure sector offered good investment opportunities for long-term investors such as pension funds and insurance companies.

Finkleston said that Indonesia ,as well as other developing countries in the region, needed to strengthen their capital market so that companies involved in providing infrastructure facilities such as toll roads, power plants and telecommunication services, would have a venue to sell their bonds, which could be later be bought by long-term investors.

She further said that current market volatility in Indonesia ,as indicated by the weakening rupiah and the fall in shares, would not affect the agency'€™s investment commitment in the country. '€œOur view of Indonesia is still positive,'€ said Finkelston. '€œIndonesia is fundamentally strong, and we have the appetite to support the country and provide investment,'€ she added.