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Jakarta Post

Indonesia likely to host Islamic Mega Infrastructure Bank's HQ

  • Anton Hermansyah

    The Jakarta Post

Jakarta   /   Thu, March 10, 2016   /  10:12 pm
Indonesia likely to host Islamic Mega Infrastructure Bank's HQ President Joko "Jokowi" Widodo and Emir Qatar Sheikh Tamim bin Hamad Al-Thani inspect the honor guard at Diwan Emiri Palace, Doha, Qatar, on Sept. 14, 2015.(JP/Andi Riza Hidayat) (JP/Andi Riza Hidayat)

President Joko "Jokowi" Widodo and Emir Qatar Sheikh Tamim bin Hamad Al-Thani inspect the honor guard at Diwan Emiri Palace, Doha, Qatar, on Sept. 14, 2015. (JP/Andi Riza Hidayat) 

Indonesia is likely to host the headquarter of Islamic Mega Infrastructure Bank, a forthcoming new lender facilitated by Islamic Development Bank (IDB).

A delegation from IDB recently visited Jakarta to discuss with the government the recent updates regarding the establishment of Islamic Mega Infrastructure Bank to be founded by Indonesia, Turkey, IDB and other potential OIC countries.

IDB Indonesia country director Ibrahim Shoukry said the bank had committed to investing US$1.2 billion on projects in Indonesia this year. However, the host country for the bank's headquarter is yet to be decided.

"It will be Indonesia or Turkey. Hopefully, the investors will choose Indonesia [for the headquarters]. In May we will hold an investors' gathering at the Jakarta Convention Center. We've been here for 41 years and are committed to staying here," he said in Jakarta on Tuesday.

In the five-year plan, Ibrahim said, the IDB group would focus on five pillars in Indonesia namely infrastructure, private sector development, South to South cooperation, Islamic finance, and human development.

"We have shown them [the investors] our infrastructure and banking system. They are fascinated with our projects," Financial Services Authority (OJK) chairman Muliaman D. Hadad told thejakartapost.com.

Indonesia, he further said, had some advantages over Turkey due to its prospective market in Asia, which is healthier than Turkey's main market, Europe. Indonesia'€™s market will be broader due to the ASEAN Economic Community.

"And Indonesia is more attractive than Turkey in terms of small and medium enterprise financing," Muliaman said.

Ibrahim added that IDB is going to have its 41st Annual Meeting organized in Jakarta in coming May. '€œThe hosting of the meeting by the government of Indonesia is a clear indication of the government's support to Islamic finance development and the IDB operations in Indonesia,'€ Ibrahim said. (ags)

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Eds: Corrections on the lead and the title, underlining that it is the headquarter of Islamic Mega Infrastructure Bank, and the caption (4th paragraph) from '31 years' to '41 years'.

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