IFC gives $115m in equity to RI firms

IFC gives $115m in equity to RI firms

JAKARTA (JP): The International Financial Corporation (IFC),
an affiliate of the World Bank, has provided US$115.01 million in
equity participation and another $296.88 million in loans to
Indonesian private companies as of March.

Minister of Finance Mar'ie Muhammad, who announced the IFC's
contribution yesterday, said that the agency had also provided
loans of $330.34 million to private sector companies through
third parties.

Speaking at a hearing with the Budgetary Commission of the
House of Representatives, Mar'ie said that Indonesia would
increase its equity in the World Bank's agency by around $12.4
million to comply with the agency's resolution made in May, 1992.

The resolution required Indonesia to raise its equity by $12.4
million in five years, with annual installments of $2.48 million
beginning in August, 1992.

The minister said that the equity installments for 1992, 1993
and 1994 had all been settled, raising Indonesia's total equity
in the IFC to $23.57 million, with a holding of 23,575 shares.

"When all the equity requirements have been fulfilled, the
number of Indonesia's shares in the agency will be 28,539," he
told the hearing, which was concerned with the implementation of
the state budget for the 1992/1993 fiscal year.

The minister was explaining the government's equity
participation in the IFC and other international agencies, such
as the International Fund for Agricultural Development ($16.95
million), the Global Environment Fund, the World Bank ($110.3
million), the Indonesian Development Bank ($124.4 million), the
Islamic Corporation for the Insurance of Investment and Export
Credit (250,000 Iraqi dinar). (hen)