On 15 January 2010, a shareholder agreement was signed by state-owned infrastructure development company, PT Sarana Multi Infrastructure (SMI), together with the Asian Development Bank (ADB), the International Financing Corporation (IFC) and the German Investment and Development Company (DEG), thereby establishing PT Indonesian Infrastructure Finance. SMI invested an initial amount of IDR 40 billion, while the other foreign creditors each invested IDR 20 billion.
Planned in 2009, IIF is designed to be a specialized lending institution to manage and supply infrastructure financing throughout Indonesia. Over the next 5 years, the fund is expected to grow to USD 5.5 billion, and will finance up to 20 percent of the cost for the infrastructure projects it is involved with. It will mobilize financing for projects including roads, water infrastructure, seaports, airports, and other public facilities. In so doing, the IIF will coordinate financing for creditworthy projects, secure equity participation in the projects from other financiers, and generally facilitate effective public-private or wholly private partnerships.
In addition to the initial investment, ADB, IFC, and DEG will together commit an additional USD 80 million directly to the IIF. The ADB and World Bank will also loan USD 100 million to the Indonesian government, to be used by the IIF by way of SMI.
SMI, the major shareholder, was established for the purpose of large-scale infrastructure development in Indonesia on 26 February 2009 by Government Regulation No. 75 of 2008 on State Equity Participation in the Establishment of Perusahaan Perseroan in the Infrastructure Financing Sector. Its specific purpose is to stimulate infrastructure development financing by coordinating partnerships between multilateral finance institutions and various public and private parties; a mandate manifested in the IIF. In the future, SMI will establish other such subsidiaries to supervise, coordinate, and accelerate infrastructure development throughout Indonesia.
The ‘soft launching’ of the IIF is set to be held this week.
On 15 January 2010, a shareholder agreement was signed by state-owned infrastructure development company, PT Sarana Multi Infrastructure (SMI), together with the Asian Development Bank (ADB), the International Financing Corporation (IFC) and the German Investment and Development Company (DEG), thereby establishing PT Indonesian Infrastructure Finance. SMI invested an initial amount of IDR 40 billion, while the other foreign creditors each invested IDR 20 billion.
Planned in 2009, IIF is designed to be a specialized lending institution to manage and supply infrastructure financing throughout Indonesia. Over the next 5 years, the fund is expected to grow to USD 5.5 billion, and will finance up to 20 percent of the cost for the infrastructure projects it is involved with. It will mobilize financing for projects including roads, water infrastructure, seaports, airports, and other public facilities. In so doing, the IIF will coordinate financing for creditworthy projects, secure equity participation in the projects from other financiers, and generally facilitate effective public-private or wholly private partnerships.
In addition to the initial investment, ADB, IFC, and DEG will together commit an additional USD 80 million directly to the IIF. The ADB and World Bank will also loan USD 100 million to the Indonesian government, to be used by the IIF by way of SMI.
SMI, the major shareholder, was established for the purpose of large-scale infrastructure development in Indonesia on 26 February 2009 by Government Regulation No. 75 of 2008 on State Equity Participation in the Establishment of Perusahaan Perseroan in the Infrastructure Financing Sector. Its specific purpose is to stimulate infrastructure development financing by coordinating partnerships between multilateral finance institutions and various public and private parties; a mandate manifested in the IIF. In the future, SMI will establish other such subsidiaries to supervise, coordinate, and accelerate infrastructure development throughout Indonesia.
The ‘soft launching’ of the IIF is set to be held this week.
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