IDB offers aid to help increase trade relations
IDB offers aid to help increase trade relations
JAKARTA (JP): The Islamic Development Bank (IDB) is offering
financial aid for Indonesia's development projects and foreign
trade to promote trade relations among Islamic states, Minister
of Finance Mar'ie Muhammad says.
"This year, for example, the bank is committed to providing
aid for the development of an Islamic hospital in Bandung,"
Mar'ie told reporters yesterday after meeting with IDB's
delegates led by the bank's vice president, Fuad Abdullah Al-
Omar.
Fuad was accompanied by IDB's executive director for Brunei,
Indonesia and Malaysia, Dato Ahmad Hassan Osman, law consultant
Mohamed Fateh El Hamid and head of the operations division Farook
Uz Zaman yesterday.
Mar'ie said that IDB has agreed to appoint the state-owned
Bank Pembangunan Indonesia (Bapindo) to act as its agent for
dealing with long-term trade financing.
"I hope the cooperation will soon be introduced to various
commercial banks in the country to support the country's export-
import activities," he said
Secretary General of the Ministry of Finance Jusuf Anwar said
that IDB and Bapindo have long been involved in cooperation in
the so-called equity financing scheme.
Jusuf said that agreements on the aid for the hospital project
and the trade financing scheme for Bapindo will be signed this
week.
The IDB delegates are here to meet with State Minister of
National Development Planning/Chairman of the National
Development Planning Board (Bappenas) Ginandjar Kartasasmita,
Minister of Education and Culture Wardiman Djojonegoro, Governor
of Bank Indonesia Soedradjad Djiwandono and executives of state
banks and the National Agency for Export Development (Nafed).
Mar'ie, who is also the IDB's governor for Indonesia, said
that the delegates' visit is to explore opportunities to provide
loans for Indonesia's big projects.
The 47-member IDB, set up in 1975 under an Islamic Sharia law
which bans usury, does not earn interest on credits extended to
its members. Indonesia is one of the IDB's founders.
Mar'ie said that officials of his ministry will promote the
IDB financial assistance to business people in Jakarta, Surabaya
of East Java and Medan of North Sumatra. "The IDB is also
providing scholarships for students and experts to improve their
skills."
The IDB last year raised its paid-up capital to some US$6
billion. It has channeled $15 billion in credits to its members
so far. (fhp)