IFC increases private sector investment in Indonesia

20 , 2013 | Source: The Jakarta Post

International Finance Cooperation (IFC) has increased its private sector investments in Indonesia to US$438 million in fiscal year 2013, from about $300 million in the previous year, although investors have recently withdrawn funds from the country.

According to IFC, Indonesia is going through a difficult period with slowing growth, the weakening of the rupiah and rising inflation.

To address long-term competitiveness, the government has made infrastructure a top priority and much of the needed investment will have to come from the private sector.

"During challenging times, IFC will step in as needed to support the private sector, which can help Indonesia′s economic growth," IFC vice president for Asia and the Pacific Karin Finkelston said in an official release made available to The Jakarta Post on Thursday.

"Our record investment and advisory projects in fiscal year 2013 underlines our commitment to working with the private sector to increase infrastructure development and expand access to finance in Indonesia," he went on.

One of the much-needed infrastructure upgrades is the improvement in access to clean water to meet the growing demands of urbanization.

IFC helped provide clean water for about 1.8 million residents in the fast-growing city of Tangerang, by making its first investment in, and arranging financing for, water services company PT Moya Indonesia.

Trade and investment between emerging markets are important for tapping new sources of funds for developing economies.

IFC supported the expansion of PT Indo-Rama Synthetics, an Indonesian-based yarn manufacturing company, and Wings Corp., a food, beverage and household-cleaning products manufacturer, into Africa.

To enable more low-income people to benefit from Indonesia′s economic growth, IFC invested in PT Mitra Bisnis Keluarga Ventura, a leading microfinance institution, to increase lending to women entrepreneurs in rural areas so that they can grow their businesses and create more jobs.

 

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