IFC Committed More Than $500 Million to Support Private Sector Development in Indonesia

Jakarta, Indonesia, August 12, 2011—IFC,a member of the World Bank Group, has committed more than $500 millionof investments in Indonesia during fiscal year 2011, helping expand accessto financial services for millions of Indonesians, fight climate change,and develop vital infrastructure.

IFC worked with Perusahaan Listrik Negara, the state-owned power utility,to mobilize private investments to build, operate, and own the CentralJava Power Project, which will generate 2,000 megawatts of electricityand benefit nearly 8 million people. It was the first project put out totender under Indonesia’s new public-private partnership law.

IFC also helped Indonesian banks develop financing products to supportwomen entrepreneurs, particularly those in rural areas, and energy-efficiencyprojects. IFC worked with Jakarta’s city government to reduce carbon emissionsfrom public buildings by developing energy and water-efficiency regulations,and to ease business start-up by simplifying registration and licensingprocedures and establishing one-stop shops.

“Our investment and advisory projects in fiscal year 2011 underline ourcommitment to increase the role of the private sector to reduce the impactof climate change, increase rural incomes, and promote sustainable urbanization,”said Adam Sack, IFC Country Manager for Indonesia. “We will continue tofocus our investments and advice to extend the reach of infrastructure,increase access to finance, and scale up our sustainable agriculture andforestry program.”

In East Asia and the Pacific, IFC’s new investment commitments totaled$2.8 billion across 69 projects, a 16 percent increase from $2.4 billionin the year before. With those investments, we expect to support 72,000jobs, reach 157,000 farmers, and facilitate loans to micro, small, andmedium enterprises worth around $12.3 billion.

Newly appointed Director for East Asia and the Pacific Sérgio Pimenta said,“Accelerating infrastructure development and empowering more micro, small,and medium enterprises to grow are key to sustainable private sector-ledeconomic development in Indonesia and across East Asia and the Pacific.IFC will continue to work with our government and private sector partnersto reduce poverty, create jobs, and support economic growth.”

Pimenta directs advisory and investment operations in East Asia and thePacific and oversees more than 300 staff across 13 countries.

About IFC

IFC, a member of the World Bank Group, is the largest global developmentinstitution focused exclusively on the private sector. We help developingcountries achieve sustainable growth by financing investment, providingadvisory services to businesses and governments, and mobilizing capitalin the international financial markets. In fiscal 2011, amid economic uncertaintyacross the globe, we helped our clients create jobs, strengthen environmentalperformance, and contribute to their local communities—all while drivingour investments to an all-time high of nearly $19 billion. For more information,visit

www.ifc.org

.

Stay Connected

www.facebook.com/IFCwbg

www.twitter.com/IFC_org

www.youtube.com/wbifc

www.ifc.org/SocialMediaIndex

www.facebook.com/IFCIndonesia