IFC to invest $400m to help 41 million Indonesians

The Jakarta Post, Jakarta | Thu, 10/15/2009 5:43 PM

The International Finance Corporation (IFC), a member of the World Bank Group, announced Thursday a plan to invest up to US$400 million per year in a five-year program to improve the quality of life of 41 million Indonesians.

Adam Sack, the IFC's country manager, said the investment would address three main objectives: promoting sustainable urbanization, increasing rural incomes and reducing the impact of climate change.

“Our investment will focus on long-term financing, risk division and capital investment,” he told the press.

He added that the IFC’s strategies would combine investment and advisory services to expand access to financial services for the underserved.

“With this five-year plan, we expect to improve the quality of life of 41 million of Indonesians, facilitate US$13 billion of investments, and reduce 180 million tons of CO2-equivalent of greenhouse gases,” he said.

The initiative targets almost 18 percent of Indonesia’s population. According to the Central Statistic Agency (BPS), 32.5 million or 14.15 percent of Indonesia’s 230 million inhabitants live under the poverty line.

As of June 30, the IFC had committed US$968 million of investment in Indonesia, mostly in financial markets, agribusiness and manufacturing. (bbs)