Indonesia launches infra financing company

The ministry of finance has launched the Indonesia Infrastructure Finance company to provide long-term funding for the country’s infrastructure and promote PPPs. It launches with $179m of equity and committed loans of up to $224m.

Indonesia’s ministry of finance has launched Indonesia Infrastructure Finance (IIF), a non-banking financing company set up to provide long-term funding for the country’s infrastructure plans.


IIF is starting with IDR1.6 trillion (€136 million; $179 million) in equity from state-backed PT Sarana Multi Infrastruktur (IDR600 billion), Asian Development Bank (IDR400 billion), International Finance Corporation (IDR400 billion) and German development institution DEG (IDR200 billion).

In addition, the World Bank and the Asian Development Bank have also approved loans of IDR1 trillion each with the Australian government to contribute an undisclosed grant to support preparatory work for IIF’s establishment.

Sarana Multi Infrastruktur said in a release yesterday that IIF will target priority government projects in telecommunications, power generation, toll roads, ports and water using debt, equity and credit enhancing guarantees to help fund these projects. IIF also expects to attract “significant private investments” to help fund infrastructure public-private partnerships in Indonesia.

At the launch event, Bambang Subianto, IIF’s president, said IIF will “provide much needed long-term financing and advisory services to accelerate infrastructure development in Indonesia”.