IFC optimistic about Indonesia's prospects<\/p>\n
JAKARTA (JP): The International Finance Corporation (IFC), a
\nWorld Bank agency which lends to the private sector, remains
\noptimistic about the prospects of the Indonesian economy and is
\neven looking to expand and broaden its operations here.<\/p>\n
Visiting IFC vice president for investment operations
\nJemal-ud-din Kassum dismissed \"events in the summer\" -- which is
\nhow he described the currency turmoil hitting Indonesia and other
\nSoutheast Asian nations -- as temporary.<\/p>\n
In the event of the crisis, the IFC has reviewed its position
\nin the region, Kassum said.<\/p>\n
\"We're very pleased,\" he said of the results on the Indonesian
\nreview. \"It confirmed our judgment that whatever was going on,
\nwas a temporary phenomenon that has to be dealt with.\"<\/p>\n
He predicted an even stronger private sector emerging after
\nthe crisis in view of the steps that had been taken by Indonesia.<\/p>\n
Kassum wound up his five-day visit to Indonesia yesterday
\nafter meeting with several top Indonesian officials and
\nrepresentatives of the business community.<\/p>\n
He was accompanied by the New Delhi-based IFC director for the
\nAsian Department Rashad Kaldany and Washington-based IFC South
\nAsian manager Sami Haddad.<\/p>\n
Kasum, who praised the Indonesian government for recognizing
\nthe need to strengthen the banking sector, said he was
\nparticularly impressed by the economic management team.<\/p>\n
IFC's total lending commitment to date is US$1.4 billion to 43
\ncompanies, including $362 million committed last year in six
\ndifferent transactions. Half of the loan commitments were through
\nan arrangement which involved local banks in the projects.<\/p>\n
Despite strong exposure to currency upheavals, Kassum said
\nIFC's loans portfolio in the region remained strong.<\/p>\n
None of the Indonesian debtors had difficulties repaying their
\ndebts, he said.<\/p>\n
\"On balance, there has not been any problem,\" he said.<\/p>\n
Kassum added IFC was hoping to increase its operations in
\nIndonesia, broadening its coverage to more enterprises outside
\nJava and expanding its activities into new areas like education.<\/p>\n
\"We're ready. Our door is very much open,\" he said.<\/p>\n
Kaldany said IFC was doubling its office in Jakarta in the
\ncoming months, focusing on small and medium scale enterprises.<\/p>\n
IFC has already financed its first hospital project in
\nIndonesia. The $49 million Siloam Gleneagles opened in the Lippo
\nKarawaci satellite city in Tangerang last year.<\/p>\n
\"We're looking at other hospitals,\" Kaldany said, adding that
\nIFC was working with Gleneagles Corp of Singapore to open up
\ndiagnostic centers, mostly in Asia.<\/p>\n
IFC was also looking at financing education projects such as
\nmanagement training institutions and primary and secondary
\neducation, he said.<\/p>\n
There would not be any overlapping with the World Bank because
\nIFC would be financing the private sector, he said.<\/p>\n
Kassum described IFC's overriding characteristic as \"being a
\npioneer\", expanding into new areas and territories.<\/p>\n
IFC chief mission for Indonesia and Malaysia, Antonio David,
\nsaid none of the two plantation companies financed by IFC -- one
\nin West Kalimantan and another in Riau -- was involved in the
\nforest fires blamed for much of the haze enveloping Sumatra and
\nKalimantan.<\/p>\n
\"IFC used the World Bank environmental safety guidelines,\"
\nKassum said.<\/p>\n
\"We go out of our way to perform environmental due diligence,\"
\nhe said, adding that this includes banning the use of fire for
\nclearing land. (emb)<\/p>",
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"sponsor": "Okusi Associates",
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