L. Joseph
Phone: (202) 473-7700
Fax: (202) 974-4384
E-mail: ljoseph@ifc.org


WASHINGTON, D.C., Sept. 29—Mr. Jemal-ud-din Kassum, Vice President for Investment Operations of the International Finance Corporation (IFC), will lead a delegation to Indonesia from September 26 to 30, 1997, the week immediately following the World Bank-IMF Annual Meetings in Hong Kong. The delegation will consult with government and industry leaders on initiatives to encourage private sector development and discuss IFC's ongoing activities in Indonesia.
Last week, IFC signed investment agreements with PT. Berlian Laju Tanker (BLT), a local shipping company, and PT. AdeS Alfindo Putrasetia (AdeS), a local bottled-water producer. IFC's financing package of US110 million to BLT will be used to finance the building of ten new Indonesian flag vessels; the US$77 million package to AdeS will be used mainly to finance a new bottlemaking facility and expand the company's existing bottled water capacity. The two agreements add to IFC's recently signed US$35 million commitment with an aluminum sheet/foil roller and US$80 million commitment with a major consumer products manufacturer.
In the fiscal year ending June 1997, IFC approved financing for Indonesia's private sector aggregating US$362 million. As of end-June, IFC's disbursed portfolio in Indonesia totaled US$970 million, comprising US$504 million for IFC's own account and US$466 million for the account of participating foreign banks.
To further broaden its areas of support to the Indonesian private sector, IFC is proceeding with two initiatives. In East Indonesia, IFC and FIAS (the World Bank-IFC Foreign Investment Advisory Services) in close coordination with National Development Planning Board (Bappenas), will identify impediments to private sector investments, recommend ways to alleviate or minimize them, and eventually structure an advisory vehicle which would help regional entrepreneurs develop viable and bankable investment projects. IFC, together with the Indonesian private sector, will also organize quality management development programs to help train middle/first line managers, who are critical to the continued growth of the private sector and the Indonesian economy. Mr. Kassum will be accompanied by Mr. Rashad Kaldany, Regional Director, Asia II; Mr. Sami Haddad, Manager, Asia II, and Mr. Hany Assaad, Manager, Capital Markets Division, Asia II. Messrs. Kaldany, Haddad and Assaad are all recently appointed to their positions. The delegation will be joined in Jakarta by Mr. Antonio David, IFC's Regional Representative in Indonesia.
Mr. David said, "The visit of the IFC delegation reaffirms the Corporation's long-term commitment to the growth of the private sector in Indonesia. It will also give IFC executives the opportunity to meet with senior leaders in the government and in business to discuss new initiatives."
IFC, a member of the World Bank Group, is the largest multilateral source of equity and loan financing for private sector projects in developing countries.