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US to finance Indonesia’s multibillion development projects
The US’ International Development Finance Corporation (IDFC), said to be a direct competition to China’s growing influence in projects across developing countries through the Belt and Road Initiative (BRI), arrived in Jakarta on Friday to cements its participation in Indonesia’s development projects.
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President Joko "Jokowi" Widodo. (Antara/Hafidz Mubarak A)
I
ndonesia is slated to secure US$5 billion in development funds from the United States’ financing arm for developing countries and more from the American private sector, following investments from China and the United Arab Emirates (UAE).
The US’ International Development Finance Corporation (IDFC), said to be a direct competition to China’s growing influence in projects across developing countries through the Belt and Road Initiative (BRI), arrived in Jakarta on Friday to cements its participation in Indonesia’s development projects.
“I welcome the DFC's commitment to supporting the Indonesian government’s priority programs, especially in infrastructure development, energy and digital technology,” President Joko “Jokowi” Widodo said in the opening remarks of his meeting with IDFC representatives and US delegates at the State Palace in Central Jakarta. “I was assured that the DFC was ready to allocate $5 billion.”
The figure will add to expected funds from China’s BRI and the UAE to fuel development projects across the archipelago. Indonesia is stepping up efforts to attract investments and subsequently create jobs and stoke economic growth, which has slowed to its lowest level in more than two years.
The IDFC, which manages more than $200 billion in investments for emerging countries, has discussed investment opportunities in Indonesia’s infrastructure, healthcare, road construction and energy projects, said IDFC CEO Adam Boehler.
"Our first visit is to Indonesia, which symbolizes how important the country is to the US and to affirm our friendship,” Boehler said after a meeting with Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan. “We were established only two weeks ago.”
Boehler also expressed the group’s appreciation for Jokowi for focusing on private capital in funding development projects, stating that the changes the President has made had "helped American businesses”.
