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IFC seeks to vastly hike financing commitments to Indonesia
The International Finance Corporation plans to invest billions more in Indonesia, if the government continues with key reforms.
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Electricity and telephone poles stand in the middle of Jl. Raya Gandul, Cinere, Depok, West Java, in November 2020, long after the road was expanded to accommodate increasing traffic. (JP/P.J. Leo)
T
he International Finance Corporation (IFC), a member of the World Bank Group, plans to expand its presence in Indonesia with a multifold increase in long-term financing commitment to support the country’s private sector.
The IFC, which focuses on private-sector development in emerging economies, has committed US$5.7 billion in long-term financing in Indonesia over the past decade, according to Alfonso Garcia Mora, IFC regional vice president for Asia and the Pacific.
The Washington-based international financial institution wants to raise this long-term financing commitment to roughly $12 billion over the next five or six years, delivering $1 billion worth of investment per year, if Indonesia continues implementing key reforms.
“Indonesia is one of our priority countries in Asia,” Garcia Mora told The Jakarta Post in an interview during his visit to the country on Feb. 10.
“This is what we have communicated to the authorities and also to the private sector, that we really want to significantly increase our presence and our lending and investments in the country.”
Garcia Mora, who previously worked in the private sector for 12 years, said the plan was aimed in part at supporting companies in the issuance of sustainable bonds, which the companies could use to invest in climate-related activities.
Read also: IFC’s Komodo green bond raises $134m for climate investments
