IDB Group's deal boosts Indonesia role as key hub
JEDDAH, Mar 20, 2013 (Menafn - Arab News - McClatchy-Tribune Information Services via COMTEX) --Indonesia and the Islamic Development Bank (IDB) Group have signed an agreement for the establishment of the IDB Group Country Gateway Office in Indonesia as continuous strategic partnership between the bank and Indonesia.
The strategic bilateral relations have been transformed into actions through the signing of agreements between IDB Group private sector arm, The Islamic Corporation for the Development of the Private Sector (ICD), with Indonesia's private sectors on power and energy industry and micro, small and medium enterprises.
Agus Martowardojo, Indonesian finance minister, and Ahmad Mohamed Ali, president of the IDB Group, signed the agreement.
"We are pleased to have our field presence in Indonesia through IDB Group Country Gateway Office as this shows a stronger bilateral relations between IDB Group and the Government of Indonesia, in accelerating the economic growth as well as contributing to the development of Indonesia," said Ahmad Mohamed Ali Al-Madani.
He added: "The signing agreements with private sectors in Indonesia demonstrate our concrete actions, following the launch of strategic framework of IDB Group Member Country Partnership Strategy for Indonesia in 2011, which is based on private sector and infrastructure development as key pillars, and redefines our reformed operating principles of pro-active, inclusive and regionally balanced development."
The official said: "Leveraging on its key strengths, the IDB Group Country Gateway Office will serve as a platform for all entities of the IDB Group to effectively implement project and programs, expand cooperation in Islamic financial products and services, trade and project financing, and technical and advisory services, both in public and private sectors."
The office will also serve as an implementation hub for more effective management of IDB Group's portfolio in Indonesia and for generating more business opportunities particularly in transportation, energy and public-private partnerships.
The Country Gateway Office will also support capacity development in Islamic Finance and Reverse Linkages through the Flagship Programs of Indonesia's South-South and Triangular Cooperation Signing of agreements between Islamic Corporation for the Development of the Private Sector of IDB and private sectors in Indonesia cover two key sectors, which are Small and Medium Enterprises (SME) and power and energy industry.
Khaled Al-Aboodi,CEO of ICD, said: "Indonesia is a key market for us at Islamic Corporation for the Development of the Private Sector of IDB."
The CEO added: "The signing of agreement with our syndication partners on financing agreement with PT Mandala Multifinance Tbk (MMF) reflects our intention on boosting up SME sector, as this may help further increase SME access to finance and be part of the growth of Indonesian economy, while the agreement with an independent power producer company in Indonesia, demonstrates our commitment toward financing the Indonesian private sector especially in supporting the country's infrastructure sectors in the coming years."
For the SME financing, ICD has partnered with key investors from our member countries, such as Malaysia, Brunei and Qatar in joining the syndication, which demonstrates the efforts of IDB Group in bringing investors from OIC countries into Indonesia.
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