IFC Launches New Country Strategy to Maximize Development Impact in Indonesia

In Jakarta: 
Novita Wund, IFC 
Phone: (+62) 8118400438 
E-mail: NWund@ifc.org 

In Hong Kong: 
Hannfried von Hindenburg, IFC 
Phone: +1 852 2509 8115 
E-mail: hvonhindenburg@ifc.org  




Jakarta, Indonesia, October 15, 2009—IFC, a member of the World Bank Group, has 
launched a new five-year strategy for Indonesia designed to reduce the impact 
of climate change, increase rural incomes, and promote sustainable 
urbanization. IFC’s overarching goal is to create opportunities and improve the 
lives of millions of Indonesians.   

To achieve its objectives, IFC’s strategy combines investment and advisory 
services to expand access to financial services to the underserved, increase 
access to infrastructure, strengthen commodity-based supply chains such as 
agribusiness and forestry, and improve the investment climate. 

“Indonesia’s economy has proved resilient in the face of the global economic 
crisis, but its development challenges remain significant,” said Adam Sack, IFC 
Country Manager for Indonesia. “The private sector has an important role to 
play in addressing these challenges. We designed our country strategy to ensure 
that we can have a positive impact through private sector development.” 

IFC will measure its progress through a five-year plan that seeks to improve 
the lives of 41 million Indonesians, facilitate about $13 billion in 
investments, and reduce 180 million tons of carbon dioxide-equivalent of 
greenhouse gasses. IFC’s investments will reach $300 million to $400 million 
annually focusing on long-term financing, risk sharing, and equity. 

Examples of IFC’s projects are energy efficiency finance and warehouse 
receipts. IFC will assist banks in identifying and assessing the risks of 
energy efficiency and renewable energy projects, and help develop a  system to 
enable farmers and other agribusiness players obtain credit from formal 
financial institutions by using commodities as collateral. IFC also will 
support key financial institutions that will massively scale up access to 
financial services for the underserved. 

As of June 30, 2009, IFC had committed a total of $968 million in Indonesia. 
Most of these investments are in financial markets, followed by agribusiness 
and manufacturing. In addition, IFC has partnered with the Indonesian 
government to implement a series of reforms in business regulations, including 
reforms  that reduced the number of days and steps to register a business, from 
151 days and 12 steps in 2005 to 60 days and 9 steps as recorded in Doing 
Business 2010.         

IFC Advisory Services in Indonesia are supported by the governments of 
Australia, the Netherlands, New Zealand, and Switzerland. 

About IFC 
IFC, a member of the World Bank Group, creates opportunity for people to escape 
poverty and improve their lives. We foster sustainable economic growth in 
developing countries by supporting private sector development, mobilizing 
private capital, and providing advisory and risk mitigation services to 
businesses and governments. Our new investments totaled $14.5 billion in fiscal 
2009, helping channel capital into developing countries during the financial 
crisis. For more information, visit www.ifc.org.