RI remains second largest market in East Asia for IFC<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Indonesia has remained the second largest market in East Asia and
\nthe Pacific, after China, for three consecutive years for the
\nInternational Finance Corporation (IFC), a private lending arm of
\nthe World Bank.<\/p>\n
IFC's loans exposure for Indonesia in its fiscal year 2005,
\nwhich ended in June, reached US$167 million, a jump of 21 percent
\nfrom last year's $132 million, according to the body's financial
\nstatement.<\/p>\n
From the $167 million, some $157 million was disbursed for
\nequity and loans portfolio and $10 million for guarantees and
\nrisk management products for seven local firms.<\/p>\n
In total, IFC had disbursed $494 million -- $344 million in
\nloans, $111.8 million in equity and $37.4 million for guarantees
\nand risk management products -- to 38 Indonesian companies over
\nthe past three years.<\/p>\n
IFC country manager for Indonesia German Vegarra said IFC
\nprincipal had given the green light to accelerate investments
\nhere, which is the eighth biggest IFC market worldwide, due to
\nthe satisfying performance.<\/p>\n
"We have invested almost $500 million over the past three
\nyears and may exceed $1 billion in cumulative investments over
\nthe period 2002 to 2007," he said here on Thursday.<\/p>\n
Vegarra said IFC's future key investment areas would focus on
\ninfrastructure, financial services, oil, gas, mining and small
\nand medium enterprises (SMEs).<\/p>\n
"We would like to see investments in toll roads and
\nelectricity plants. To double our investment growth in this
\ncountry, we would also like to support investment in alternative
\nenergy," he said.<\/p>\n
He added that his firm would set aside a large portion of
\nincome to support investment in alternative energy, such as
\ngeothermal and solar energy.<\/p>\n
"As you know investment in this area is not economically
\nviable because it is very expensive. So IFC will use some of its
\nincome to lower the cost of the capital or improve the tariff
\nstructure, so we can attract big players to come and invest in
\nthis area," he said, adding that about one fourth of the
\ncompany's global profit would be allocated to support the
\ndevelopment of alternative energy.<\/p>\n
IFC's financial statement said its global net income reached
\n$2.02 billion, while its operating income reached $1.95 billion.<\/p>\n
Vegarra also said that IFC had been supporting five projects
\nworth $210 million which were expected to be completed by the
\nyear end. It also expects more projects worth $250 million to be
\ncompleted by June 2006.<\/p>\n
The corporation's Program for Eastern Indonesia SME Assistance
\n(IFC-Pensa) also committed $2 billion in loans during its two-
\nyear operation in the country to support the development of the
\ncountry's SMEs. (006)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-remains-second-largest-market-in-east-asia-for-ifc-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}