Indonesia to build cardiac center in Palestine

Antara News, Tue, February 08 2011

Jakarta (ANTARA News) - The Ministry of Health is building a cardiac center at Al Shifa hospital in Palestine, at a cost of Rp20 billion.

"Heart disease is most prevalent in the area, so is in eye diseases, but we chose a cardiac center because it is more life saving," Health Minister Endang Rahayu said after signing an MoU here Monday.

The MoU was signed by Health Ministry`s Secretary General Ratna Rosita and President of the Islamic Development Bank (IDB) Ahmed Mohamed Ali in Jakarta Monday afternoon in the presence of the health minister.

The Indonesian Cardiac Center will be built on 1,500 square meters of floor space of the five floors of Al Shifa hospital in Northern Gaza, Palestine.

It will take eight years to build the center with a grant from the Indonesian government, including the medical equipment.

The medical facility is built under an Indonesian government`s commitment to provide humanitarian assistance for the people and government of Palestine as declared in the 2009 OKI meeting for the Reconstruction of Palestine in Sharm el Sheik, Egypt.

In the meantime the IDB became a partner in building the project.

IDB is committed to provide 8 million US dollars for the Indonesian Cardiac Center.

Upon completion of the project, the health minister will grant to the Palestinian government, which will be followed by an exchange in science and health personnel.

"The Palestinian government will not block the access of Indonesian volunteers," the health minister said.

Editor: B Kunto Wibisono

RI to get standby loan of $ 1 b

The Jakarta Post, Jakarta | Thu, 03/19/2009 6:23 PM

The Indonesian government is in a process to finalize of getting a standby loan worth US$ 1 billion (Rp 12 trillion) from the Islamic Development Bank (IDB) and the France government to help facing impacts of global economic crisis.

Hartadi A. Sarwono, deputy governor of Bank Indonesia (BI), said that his office was negotiating over the agreement in which Indonesia was expecting to receive $500 million from IDB and the remaining $ 500 million from the French government.

“Prior to the agreement, the government received $5.5 billion,” he told tempointeraktif.com.

He said that the country's deficit reserves would likely to go down from $ 51.63 billion to $ 48.79 billion by the end of the year due to the decreasing values of Rupiah.

“BI will continue look for efforts to keep our currency stabile. Thus far, our reserves which currently stand at $ 53. 7 billion are enough to keep the rupiah values in the market,” he said. (ewd)

ADB to start $5b regional infrastructure project fund

Mustaqim Adamrah, The Jakarta Post, Manila, the Philippines | Thu, 03/12/2009 1:35 PM

The Asian Development Bank (ADB) is setting up a regional infrastructure fund that can be accessed by its members, including Indonesia.

The bank has managed to bring together funding pledges amounting to around US$5 billion, including from the Islamic Development Bank (IDB), with other possible funding sources still being explored, including from China and South Korea

The IDB has already thrown its weight behind the proposed ADB funding scheme with $1 billion, according to ADB Southeast Asian department director Jaseem Ahmed.

"We have an agreement with the IDB to work towards a joint infrastructure fund. We are also in talks with China and South Korea to see if they're willing to participate," Ahmed told reporters invited to the ADB headquarters last week.

"If we are able to get money from the IDB, it will be only for our joint member countries, which are around 10 or 11 members," he said.

Ahmed said the ADB had expected to finalize the funding scheme worth between $2 billion and $5 billion "sometime this year".

The fund would be available to finance infrastructure projects not only in Southeast Asia, but also in other Asian regions, he added.

The scheme has been planned in response to "a general understanding and belief that the Asian region needs more investment in infrastructure", according to Ahmed.

"Now we see that infrastructure can play an important role in sustaining strong economic recovery in the region," said Ahmed.

ADB expected to see Thailand, Malaysia and Indonesia among recipient countries, with the later accounting for a large volume, he said.

"We certainly believe Indonesia can usefully increase investment in infrastructure," said Ahmed.

"And I believe that the policy of the *Indonesian* government to increase infrastructure spending is to go for the kind of level that we saw before 1997," he added.

According to the ADB, Indonesia's outstanding debt to ADB has now reached about $22 billion since 1969, making it the bank's largest debtor. Indonesia, ADB's fifth largest shareholder, signed $1.1 billion of loans from the bank last year.

Just recently, the government has established a Rp 3 trillion ($250 million) Infrastructure Fund in cooperation with the World Bank and the ADB with a view to accelerating the implementation of long-delayed infrastructure projects.

The fund total so far, however, seems to be negligible compared to the Rp 1,430 trillion in new investments Indonesia needs for its infrastructure development in the next five years, but it can serve as seed capital and a catalyst for attracting private investors to the sector amid the current global credit squeeze.

In a bid to speed up infrastructure development and prevent mass layoffs resulting from the global economic downturn, the government has allocated Rp 150 trillion ($12.5 billion) for infrastructure projects this year, two thirds of which is due to come from the state budget and the rest from state enterprises.

Planned infrastructure development is crucial to Indonesia's economy, because of and to make up for the decline in exports and in foreign-direct investment.

These government-led infrastructure projects will be a major factor propeling the economy towards the 4.5 percent economic growth target in place for this year.

Finance Minister Sri Mulyani Indrawati has said the effect of the infrastructure stimulus should be felt at the latest by June.

ADB allocates $1.75b to Indonesia

Aditya Suharmoko ,  The Jakarta Post ,  Jakarta  |  Mon, 02/16/2009 7:17 PM   

The Asian Development Bank (ADB) is set to provide a total of US$1.75 billion in loans to help Indonesia strengthen its fiscal management amid the threats of the global financial crisis. 

"We are ready to support Indonesia with another $1 billion in loans on top of the already allocated $750 million," ADB President Haruhiko Kuroda said after a meeting with Finance Minister Sri Mulyani Indrawati in Jakarta on Monday. 

ADB Executive Director Ceppie K. Sumadilaga said the $750 million in project loans had been prepared and committed to provide the remaining $1 billion, $500 million of which will come in the form of program loans and $500 million as standby loans. 

Asked when the loans will be disbursed, he said it "will depend on Indonesia's needs". The tenure is between 17 years and 20 years, while the interest rate is LIBOR plus 0.5 percent. 

Finance Minister Sri Mulyani Indrawati said the $1.75 billion in loans would help Indonesia make counter-cyclical measures. "Our source of financing has become secured with ADB loans." 

The government has set the 2009 budget deficit at Rp 129.5 trillion, or 2.5 percent of the GDP. 

Mulyani said earlier several multilateral agencies and countries had provided $6 billion in standby loans for Indonesia. The World Bank provides $2 billion, the ADB $1 billion, the Islamic Development  Bank between $500 million and $1 billion, Japan $1 billion and Australia $1 billion.

Related Article:

ADB mulls to guarantee Indonesian debts

The IDB approved US$ (348.15) million for new projects

Reliefweb.int

Source: The Islamic Development Bank Group (IDB), Date: 11 Feb 2009 

Jeddah - The Board of Executive Directors of the Islamic Development Bank (IDB), which concluded its 257th session at IDB headquarters in Jeddah today, approved US$ (348.15) million for new projects and technical assistance in member countries and for Muslim communities in non-member countries. 

The development projects approved by the Board involve financing operations in favour of six member countries including Kazakhstan, Yemen, Sudan, Lebanon Indonesia and Egypt, in addition to four Grants from the Waqf Fund for Somalia and three Muslim communities in non member countries in Kenya India and Tanzania. 

Details of approvals and items for information reviewed by the Board are as follows: 

DEVELOPMENT PROJECTS 

• US$ 186 million Istisna'a financing for the reconstruction of the Road Section "Border of South Kazakhstan Oblast - Taraz" under the construction of Western Europe–Western China (WE-WC) Road Project – Kazakhstan.
   
• US$ 21.25 million Instalment Sale for the Silos Project at Al-Saleef Port – Yemen.
   
• US$ 19.50 million Leasing financing for the Cotton Ginning Plants Project – Sudan.
   
• US$ 15.50 million Istisna'a financing for the Development of Mkalles Roadway Interchange Project - Lebanon.
  
  
• US$ 10.17 million Loan + T.A. Grant financing for the Re-scoping of the approved project under the title "Microfinance Support Project – Loan + T.A. Grant – Egypt.
  
  
• US$ 83 million Loan financing for Integrated Community Driven Development Project which is a part of a broader national program aimed at Empowering the population affected by Tsunami, Indonesia.
  
  

GRANTS AND SPECIAL ASSISTANCE PROJECTS FROM WAQF FUND 

• US$ 340,000 for the Construction of a Secondary School for Veterinary Medicine and Agriculture, Galcaio, Somalia .
   
• US$ 350,000 for the Expansion of Tawfiq Hospital, Malindi, Kenya.
   
• US$ 190,000 for the Construction of a Secondary School for Muslim Education Society at Ograbraj Village, Andaman District, Andaman & Nicobar Islands, India.
   
• US$ 330,000 for the Construction of the Amanah Secondary School, Ilongero, Singita, Tanzania.
   

APPROVALS BY THE PRESIDENT 

The following are approvals made by the President of the Bank between the previous and present sessions of the Board: 

• - US$ 300.000 T.A. (Grant) for the Second Health Project – Comoros.
   
• - US$ 180.000 T.A. (Grant) for CEDARE for increasing Adaptive Capacity to Climate Change in the Arab Region – Regional.
   
• - US$ 11 million Leasing (Supplementary Financing) for the White Nile Sugar Project – Sudan.
  
  

Islamic Bank of Asia Eyeing Indonesia and Malaysia

The Jakarta Globe, February 7, 2009 

Kuala Lumpur. The Islamic Bank of Asia, backed by DBS, Southeast Asia’s top lender, is on the hunt for acquisition opportunities in Malaysia and Indonesia to gain a foothold in the populous Muslim retail markets. 

Islamic banks are turning to retail consumer demand for growth as the explosive rise of the Shariah bond market slows markedly amid the credit crisis. 

Rising demand for ethical investments and growing interest by non-Muslims in Islamic finance have also turned the retail business into a potential major growth market. 

Singapore-based Islamic Bank of Asia is considering various options to enter Malaysia and Indonesia, including taking a stake in banks in these countries, the lender’s chief executive, Vince Cook, said on Friday. 

“Singapore presents a very good platform for wholesale and cross-border business and both Indonesia and Malaysia would complement that by giving us the ability to build a very sizeable retail business,” Cook said. 

“In Malaysia, sometime during this year we will certainly have decided exactly how we want to proceed.” 

The lender, which was set up in 2007 and has a capitalization of $500 million, currently focuses on commercial banking, corporate finance, capital market and wealth management services. 

Singapore’s DBS, Southeast Asia’s biggest bank by assets, has a 50 percent stake plus one share in Islamic Bank. Other shareholders include Gulf investors. 

DBS has been keen to make inroads into Islamic banking, especially as growth weakens in its two main markets, Singapore and Hong Kong, as those economies slide deeper into recession. 

Singapore itself has ambitions to become an Islamic finance center and has been aggressively promoting the concept. 

The operations of conventional and Islamic banks are usually kept separate, despite any cross-shareholding between the two, as Islamic and conventional funds should not be combined because the latter are interest-based. 

Purchasing a firm with an existing Islamic banking license would allow Islamic Bank to take advantage of retail opportunities more quickly than setting up its own branches in the countries. 

Reuters

Indonesia to host World Islamic Economic Conference

Jakarta  (ANTARA News) - Indonesia will host the World Islamic Economic Conference (WIEF) here on March 1-4, 2009, the chief organizer said here on Thursday. 

Deputy Chairman of the Regional Representatives Council (DPD), who is also chairman of the WIEF Steering Committee,Irman Gusman, said the WIEF will focus on food security, energy and bottom line business handling of financial crisis. 

"This forum is of vitally importance because Islamic countries, particularly those in the Middle East, are no longer backward," Irman Gusman said. 

He said that countries in the Middle East had surplus funds amounting to US$1.5 trillion which were deposited in a funding facility called Sovereign Wealth Funds (SWF), or Sovereign Welfare Funds (SWF). 

"SWF was set up as a state-owned financial institution to serve as an investment instrument overseas," he said adding that other countries like Singapore, Malaysia and China had also set up similar funding facilities," Gusman said. 

Indonesia is expected to take advantage of the SWF to face the world economic crisis by asking owners of the surplus funds to invest in Indonesia. 

"We can take the advantage of the Beijing-Dubai-New Delhi axis. Here lies our future," he said. 

He said that at present China, India and the Middle East were now leading the front line in settling the global economic problem.

IDB Chief meets Indonesian president`s special envoy

Jeddah (ANTARA News) - Dr. Ahmed Mohammed Ali, President of the Islamic Development Bank (IDB) received here last Wednesday Indonesian President`s Special Envoy for the Middle East Alwi Shihab.

The IDB President was briefed on the results of the conference on "Investment opportunities in Indonesia," organized by the Indonesian government last month in Dubai.

On the sidelines of the conference, five Memorandum of Understanding (MoU) between the Indonesian government and Gulf investors were signed.

The MoU were for the implementation of substantial projects development in Indonesia in the sectors of infrastructure, ports, railroads and palm oil refinery at a total cost of nearly $3 billion.

During the meeting, they discussed the possibility of the IDB`s contribution to these projects in general and discussed ways of enhancing the existing bilateral cooperation between Indonesia and IDB.

Islamic funding initiative aims to help reduce poverty

Desy Nurhayati , The Jakarta Post , Jakarta | Sat, 03/08/2008 12:10 PM

Indonesia has come out in support of an initiative by the Islamic Development Bank (IDB) to establish a fund aimed at promoting solidarity and cooperation among Islamic countries in line with poverty alleviation movements.

President Susilo Bambang Yudhoyono on Thursday met with the president of the IDB, Ahmed Mohammed Ali Al Madani, at the State Palace.

They discussed the idea of establishing the Islamic Solidarity Fund for Development (ISFD), which was proposed during an Organization of the Islamic Conference (OIC) meeting in 1991.

Finance Minister Sri Mulyani Indrawati said after the meeting the ISFD was a fund collected by OIC member countries and the IDB to be disbursed for poverty alleviation programs in Islamic countries.

"As of now, we have collected US$2.6 billion, with $1.6 billion from OIC members and the remaining from the IDB. We have targeted to collect $10 billion," she said.

"We will invest the money and use the profit to finance poverty alleviation programs, such as through public-private partnerships in micro-financing and other activities that are aimed at improving the economy."

She said other initiatives would include delivering technical assistance through vocational training, in a move to develop working skills and create more job opportunities.

The meeting was also attended by the former president of Sudan, Abdel Rahman Swar Al Dahab, IDB regional office director Ahmed S. Hariri, an adviser to the IDB president, Mansour bin Fetten, and former Indonesian president B.J. Habibie.

"President Yudhoyono said he fully supported the idea and would discuss it with other OIC members in the upcoming summit in Senegal," Sri Mulyani said.

She said it would require the commitment and contributions from all OIC members, and that it would take years to completely realize the idea.

IDB funding procurement of patrol boats for RI customs

Jakarta (ANTARA News) - The Islamic Development Bank is funding the procurement of three new patrol boats for Indonesia`s Customs Office (DJBC) to enable the office to intensify its patrols in the country`s waters.

"With the small patrol boats it now has, DJBC often has difficulty chasing smugglers in eastern and western Indonesia waters where the waves often reach a height of five meters," the head of facilities and operations of the DJBC`s directorate for investigation, Achmad Budiyanto, said on the DJBC`s official website on Monday.

"It is now time for the Customs Office to have wide-bodied patrol boats with a length of 38 meters that can sail from island to island and brave high sea waves," he added.

State-owned ship-builder PT PAL had won the international tender held for the procurement of the patrol boats for DJBC, he said.

He said construction of the new boats would be completed in February next year.

DJBC now only had a total of 207 patrol boats of five types. he added.

Mideast bizmen keen to invest in Indonesia, banker says

Jakarta (ANTARA News) - Middle Eastern businessmen are keen to invest in Indonesia without any hidden agenda, the chairman of the Indonesian Syaria Bank Association (Asbisindo), M Riawan Amin, said here Thursday.

"With their huge funds, they will leave the US and the European Union, and are ready to enter Asia, including Indonesia, for business without any political agenda," Riawan told ANTARA.

As the world`s largest Muslim country with the same cultural background Indonesia should take the opportunity, he added.

Citing an example, he said the Islamic Development Bank (IDB) had provided US$10 billion in funds for poverty eradication through payment of tithes.

IDB is a stakeholder in Bank Muamalat Indonesia (BMI).

However, the Middle Eastern businessman`s plan to invest in Indonesia could not be realized soon due to the absence of a law on Sukuk (obligation in Islamic law), rampant corruption and double taxation risks.

"We will have to do many things to attract them. Moreover, syariah banking has yet to become a national agenda," Riawan said.

Some Asian countries such as Malaysia, Singapore and Hong Kong had become main competitors to Indonesia in attracting investment from the Middle East, he noted.

Singapore and Hong Kong which had different cultural background with the Middle East, are planning to be centers for syariah banking.

Malaysia had offered facilities, including tax incentives, to lure Middle Eastern investors.

To date, Indonesian investment in the Middle East is made through third parties such as Singapore.

Riawan , who is also president director of Bank Muamalat Indonesia (BMI), said the bank`s presence was expected to lessen investors` doubts about Indonesia`s business potentials and prospects.

The bank`s customers had increased from 1.2 million in 2006 to 1.7 million in 2007.

Individuals` savings at the bank increased from Rp6.8 trillion to Rp8.2 trillion during the same period.

Sumatra governors seek links to foreign financial institutions

Fadli, The Jakarta Post, Batam

The governors of Sumatra say they will seek approval from the central government to cooperate with foreign financial institutions to fund infrastructure projects in Sumatra.

The decision was reached during the Sumatra Governors Forum, held in Batam on Nov. 29 and 30. The forum brings together the governors of North Sumatra, West Sumatra, South Sumatra, Riau, Riau Islands, Jambi, Bengkulu, Bangka Belitung, Lampung and Aceh.

If the proposal is approved, the provinces would be able to forge direct links with foreign funding bodies, such as the Islamic Development Bank, World Bank and Asian Development Bank, without having to go through the central government.

The proposal has been sent to President Susilo Bambang Yudhoyono.

Riau Islands administration official Tengku Mukhtaruddin said direct cooperation with foreign funding institutions would facilitate the ongoing development in Sumatra.

He said infrastructure projects on the island would be delayed if administrations had to wait for allocations from national and regional budgets.

"We have to realize the projects we have been planning in the very near future. We have decided to take funds not only from national and regional budgets, but also from foreign financial institutions," Mukhtaruddin told The Jakarta Post on Monday.

Mukhtaruddin served as the deputy of the Sumatra Governors Forum, which was led by Riau Islands Governor Ismeth Abdullah.

Home Minister Mardiyanto opened the forum, which was attended by Governor Rudolf Pardede of North Sumatra; Governor Gamawan Fauzi of West Sumatra; Governor Rusli Zainal of Riau; Governor Ismeth Abdullah of Riau Islands; Governor Syahrial Oesman of South Sumatra; Governor Zulkifli Nurdin of Jambi; Governor Agusrin M. Najamuddin of Bengkulu; Governor Eko Maulana Ali of Bangka Belitung; and Deputy Governor Muhammad Nazar of Aceh.

Mukhtaruddin said the proposal to work directly with foreign institutions was first raised during the first meeting of the forum in 2002, in Lagoi, Riau Islands.

He said the most pressing infrastructure projects for the island included Sumatra train links, toll roads, freeways and the construction of at least three harbors.

The recent forum also agreed to transform Riau Airlines into Sumatra Airlines. All of the governors agreed to provide the necessary funding to strengthen the airline's capital, so it could add to its fleet and routes.

"Lack of funds is the main obstacle for all provinces in Sumatra to realize their development plans. So far, the administrations have no direct links with financial institutions. Starting from now, we are asking the government to let us make direct links, so we can achieve our goals in a short time," Mukhtaruddin said.

Gubernatorial forum agrees to construct Sunda Strait Bridge

Batam (ANTARA News) - The Sumatra gubernatorial forum at a meeting here agreed to materialize the infrasturcture building among others the Sunda Strait bridge construction, which will connect Java and Sumatra islands.

The forum, during a coordination meeting here on Friday and Saturday, said it will seek construction funds from the national budget, domestic and foreign private companies, the Islamic Development Bank (IDB), World Bank and Asian Development Bank (ADB).

The infrasturture construction which should be immediately materialized were the Trans Sumatra railway, Trans Sumatra Toll Road and the national main road in Riau Island and Bangka Belitung.

The forum also agreed to urge the central government to immediately solve the energy crisis in Sumatra by means of deregulation to terminate the monopoly of the State Electricity Company.

The forum also said deregulation would make it easier for private businessmen to engage in power production to overcome the electricity problem in Sumatra.

Deeper pockets needed to finance Deep Tunnel: Guv

The Jakarta Post, Jakarta

The project to build a 22-kilometer tunnel to solve Jakarta's chronic water and transportation problems will likely cost some Rp 16.3 trillion (US$1.8 billion), four times the budget proposed in February.

Governor Sutiyoso said Monday that 30 percent of investment for the project would come from the central government and the city's budget.

"I'm inviting the private sector to fund the project," he said.

Sutiyoso expressed optimism that the private sector would invest in the Jakarta Multi Purpose Deep Tunnel project, since they would stand to reap a large amount of revenue from the electricity, water and fertilizers produced in the tunnel.

It is estimated that the tunnel will generate around Rp 2.2 trillion each year from the operation of two levels of roadway and a waste water reservoir.

Waste water from the tunnel will be processed to become clean water in North Jakarta's Pluit dam to help meet the water requirements of up to 1.5 million residents.

The tunnel will also produce hydroelectricity and fertilizer from the wastewater process.

For around two weeks of high rainfall each year, the entire tunnel, including roadways, will turn into a massive duct for channeling rainwater.

According to the Jakarta Water Supply Regulatory Body, which initiated the project, the area above the roadways will be used as a utility tunnel.

The entire tunnel will be constructed 15 meters below the West Flood Canal project with entrances in Balekambang, East Jakarta and Manggarai, South Jakarta and exits in Tanah Abang, Roxy and the airport in Cengkareng, Tangerang.

"The project is a good alternative for Jakarta since land acquisition won't be necessary to bring the tunnel about," said Achmad Lanti, the head of the regulatory body.

Achmad said he hoped the tunnel would be finished by 2014, although he admitted such a projection was based on the smooth running of the project.

The city administration will hold an international seminar on the deep tunnel on May 24 to attract investors to fund the project.

The seminar will be attended by representatives from the Islamic Development Bank (IDB) and other international financial institutions.