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)