IDB look­ing to fi­nance projects in West Java

The Jakarta Post - - BUSINESS - Arya Dipa

The Is­lamic Devel­op­ment Bank (IDB) is look­ing to fi­nance more pri­vate projects in West Java, but is de­mand­ing that busi­ness­peo­ple in the prov­ince come up with clear project pro­pos­als.

The IDB pre­vi­ously pledged US$5.2 bil­lion worth of loans for pri­vate and pub­lic projects in In­done­sia be­tween 2015 and 2020.

Some $3.7 bil­lion has been al­lo­cated to the pri­vate sec­tor, IDB CEO of Is­lamic cor­po­ra­tion for the devel­op­ment of the pri­vate sec­tor (ICD) Khaled Mo­hammed Al-Aboodi said re­cently.

“We need to have a bank­able project from the pri­vate sec­tor. But un­for­tu­nately it has not been easy to find such projects in In­done­sia,” Khaled said.

To help busi­ness­peo­ple come up with clear project pro­pos­als and forge links with for­eign in­vestors, the cen­tral gov­ern­ment and West Java ad­min­is­tra­tion has held a fo­rum at­tended by in­vestors from the Mid­dle East and South­east Asia.

Pres­i­dent Joko “Jokowi” Wi­dodo’s spe­cial en­voy for the Mid­dle East and Is­lamic Co­op­er­a­tion Or­ga­ni­za­tion (IOC) coun­tries, Alwi Shi­hab, un­der­lined the im­por­tance of a clear and com­pre­hen­sive project pro­posal to con­vince in­vestors that a project is bank­able.

“Some­times the IDB is frus­trated be­cause the re­sponse from our busi­ness­men is un­sat­is­fac­tory,” Alwi said.

Nev­er­the­less, the IDB has some pipe­line projects in Suk­abumi that in­volve the pub­lic and pri­vate sec­tor in de­vel­op­ing tourist po­ten­tial along the south coast of West Java.

“They [IDB] have come and in­spected the lo­ca­tion and the West Java ad­min­is­tra­tion has fa­cil­i­tated their in­quiries re­gard­ing land pro­cure­ment,” Alwi said.

The prov­ince has boasted a three-hour busi­ness li­cens­ing fa­cil­ity for in­vestors who wish to estab­lish busi­nesses in cer­tain in­dus­trial zones.

West Java deputy gover­nor Deddy Mizwar has pre­sented sev­eral projects he deemed fea­si­ble for in­vestors. This in­cludes the Ban­dung Metropoli­tan light rapid tran­sit (LRT), the Tan jung sari-Ker taj at iArja win an gun railway net­work, Cire­bon in­ter­na­tional sea­port and the In­done­sian halal lo­gis­tics hub.

Ker­ta­jati in­ter­na­tional air­port and Nu­sawiru air­port are also on the list of projects of­fered to the IDB.

Other projects on the list also in­clude an in­dus­trial es­tate in Bekasi and Sury­acipta City, clean wa­ter sup­plies in Cire­bon, Le­gok Nangka solid waste treat­ment and dis­posal cen­ter, Cikem­bang mini hy­dro power plant and Cile­tuh Geop­ark tourist site in Suk­abumi.

The IDB’s $5.2 bil­lion loan com­mit­ment is pri­or­i­tized for sev­eral sec­tors, such as en­ergy, trans­porta­tion, ur­ban devel­op­ment, higher ed­u­ca­tion and skills, pri­vate sec­tor devel­op­ment and Is­lamic fi­nan­cial ex­pan­sion.

The IDB will work with other agen­cies, in­clud­ing the World Bank, the Asian Devel­op­ment Bank (ADB) and China-backed Asian In­fra­struc­ture In­vest­ment Bank (AIIB) to mo­bi­lize ad­di­tional re­sources for fi­nanc­ing pri­or­ity projects in In­done­sia.

The IDB can also lend di­rectly to In­done­sia’s state-owned en­ter­prises with sov­er­eign guar­an­tees, the Saudi Ara­bia-based lender said.

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