DEG continues to support investments in Indonesia
DEG continues to support investments in Indonesia
Despite an ongoing monetary crisis in Indonesia, the German Investment and Development Company (DEG), continues to support financing of investments by both local and foreign private companies in Indonesia. DEG is Germany's finance and consultancy institution for private-sector development in Africa, Asia and Latin America, as well as Central Europe and Eastern Europe. Its activities focus on establishing and developing efficient private enterprises in these regions to improve people's living standards by promoting and sustaining economic growth.
In Indonesia, DEG has been active in financing private-sector projects since 1973. Indonesia is currently the most important country in DEG's portfolio, with investments of approximately DM 230 million in about 20 Indonesian companies. The DEG portfolio in Indonesia covers a broad spectrum of industries in manufacturing, agriculture, banking and tourism. DEG provides project finance in the form of long-term loans in hard currency and equity participation.
Apart from its finance activities, DEG has been active in Indonesia since 1988 through Investment Advisory Service (IAS), a project implemented on behalf of the German and Indonesian Governments together with the Indonesian Investment Coordinating Board (BKPM).
The activities of IAS and DEG cover a broad range of services, including advice to private sector companies on long-term finance and project structuring of green field and expansion projects. DEG is also supporting young entrepreneurs who wish to start their own business through a "Business Start-up Program" for Indonesians educated in Germany.
Furthermore, DEG is implementing a new program of the German government called Public Private Partnership (PPP), to join hands with German private companies for the economic and social development of Indonesia.
The target group of PPP are German companies which will become involved on a long-term basis in developing countries. This program combines the respective strengths of private enterprises with the public development cooperation to create synergies, whereas both parties are equally able to reach their respective targets.
PPP projects cover a wide range of private-sector activities in Indonesia, such as investment, environmental protection, infrastructure, training and education, trade promotion and the social sector, as well as development of small and medium companies.