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.