IFC to up investment on positive RI outlook<\/p>\n
Rendi A. Witular, Jakarta<\/p>\n
The International Finance Corporation (IFC), an investment arm
\nof the World Bank, plans to increase its investment in Indonesia,
\nSoutheast Asia's largest economy, on optimism over the country's
\neconomic and political outlooks, a senior official said.<\/p>\n
IFC country manager for Indonesia German A. Vegarra said the
\nagency planed to invest about US$210 million in Indonesia in the
\nnext fiscal year starting in June and $250 million in 2006, up
\nfrom $150 million this year.<\/p>\n
\"We plan to raise our investment here due to the high economic
\ngrowth predicted for the next couple of years and a more stable
\npolitical condition,\" Vegarra said during a press conference on
\nWednesday.<\/p>\n
He said that aside from developing the country's small-and-
\nmedium enterprises and the agricultural and mining sectors, the
\ninvestment allocated for next year would go mostly toward
\ninfrastructure, including power and water projects.<\/p>\n
Since its founding in 1956, the IFC has committed more than
\n$37 billion of its own funds and arranged $22 billion in
\nsyndicated loans for 2,990 companies in 140 developing countries.<\/p>\n
The agency has invested about $2.5 billion in Indonesia
\noverall, making the country the sixth largest recipient of IFC
\nfunds.<\/p>\n
Its Indonesian portfolio covers more than 35 companies,
\nincluding Bank NISP, Bank Buana, insurance firm Asuransi Jiwa,
\nManulife Indonesia, shipping firm PT Berlian Laju Tanker and
\nautomotive producer PT Astra International.<\/p>\n
The increased confidence shown by the IFC in Indonesia's
\noutlook could have a positive impact on foreign direct investment
\nin the country, which has been on the decline over the past
\nseveral years for a number of reasons, including legal
\nuncertainty, security fears, labor disputes and the poor
\nimplementation of regional autonomy.<\/p>\n
The IFC also announced on Wednesday a deal to provide $35
\nmillion in five-year senior loans and a partial guarantee of up
\nto Rp 210 billion ($23 million) to Bank NISP.<\/p>\n
The country's 12th largest bank in terms of assets said it
\nwould use the funds to enhance its risk management and to develop
\nexport-oriented industries.<\/p>\n
\"The funds will improve the bank's liquidity management and
\nthe balance of long-term funding sources for the disbursement of
\nlong-term loans,\" NISP president Pramukti Sarjaudaja said during
\nthe press conference.<\/p>\n
The IFC is the third largest institutional shareholder in NISP
\nwith 15.05 percent ownership. Oversea-Chinese Banking Corp. Ltd.,
\nSingapore's third-largest bank, has a 22.5 percent ownership
\nshare in the Bandung-based bank.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ifc-to-up-investment-on-positive-ri-outlook-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}