The Islamic Development Bank (IDB) has offered loans to Indonesia for three projects worth US$ 870.9 million or IDR 11.5 trillion. Finance Minister Bambang Brodjonegoro said that the three projects are in the form of partnerships between the IDB members that joined the 2016 – 2020 Member Country Partnership Strategy (MCPS).
Bambang added that the three projects consisted of a slum redevelopment project worth US$ 364 million, the development of Islamic universities and educational institutions amounting to US$ 176.5 million, and an electricity transmission construction project with a nominal value of US$ 330 million.
“All (three)will be IDB funded projects, except for the slum redevelopment project, where they will work with the World Bank and Asian Infrastructure Investment Bank (AIIB),” he said at the annual session of the IDB at the Jakarta Convention Center, Jakarta, Monday (16/5).
This project, particularly the area development, is expected to reduce slum settlements. The program is of interest to many international financial institutions. Therefore, Bambang admitted, Indonesia is very pleased and supports this initiative to improve people’s welfare.
He said that the country’s poverty alleviation program had made rapid progress. For example, data published on the United Nations’ website revealed that Indonesia met the poverty alleviation target five years ago. Also, the government is on the right track to achieving the sustainable development goals (SDGs).
On the same occasion, IDB’s Resident Representative to Indonesia Ibrahim Shoukry said that this additional commitment will increase the allocation of IDB loans to Indonesia, which now amount to US$ 5.2 billion. This is in keeping with the new partnership strategy model offered by the IDB.
Meanwhile, IDB’s President Ahmed Mohammed Ali Al-Madani said that besides loans for physical projects and social programs, the IDB has also granted export credit loan guarantees to all businesses in IDB member countries to promote trade activity among IDB members.
“We will continue to drive the Islamic economy,” said Ahmed. “To achieve economic prosperity, to build monetary instruments that integrate all elements of public finance. And also alleviate poverty and reduce unemployment.”