IsDB Provides USD 250 million in Project Finance to Indonesian Transport Sector

Jeddah, 16 May 2017 – H.E. the Finance Minister of Indonesia, Dr. Sri Mulyani Indrawati and H.E the President of the Islamic Development Bank (IsDB) Group, Dr. Bandar Hajjar, signed the Financing Agreements for the Development of the Trans South South Java Road Project during the bilateral meeting between H.E. the Finance Minister of Indonesia and H.E. the IsDB President on the sidelines of the 42nd IDB Group Annual Meeting, Jeddah, KSA.

IsDB will provide USD 250 million to support the Government of Indonesia’s plan to increase the road network capacity in Southern Java and to balance to the already congested Northern Java corridor. H.E. the President of IsDB, Dr. Bandar Hajjar, stated “We are pleased to support the Government of Indonesia’s commitment in raising levels of sustainable economic growth, creating jobs and accelerating the achievement of Sustainable Development Goals. Infrastructure development and investment, including those related to road transport such as the Trans South-South Java Road, are key in the efforts to reach those objectives.” Through the construction of approximately 159 kilometers of paved roads and bridges along the Southern Coast of Java Island in three provinces – Central Java, DI Yogyakarta and East Java, the project will help reduce travel time, improve all-weather driving conditions and reduce operating costs for the road users.

The Islamic Development Bank Group (www.isdb.org) is an international financial institution with 57 member countries. It was founded in 1975 with the purpose of fostering the economic development and social progress of member countries and Muslim communities individually as well as jointly, in accordance with the principles of Shari’ah, i.e., Islamic Law. The IsDB Group comprise independent entities such as Islamic Corporation for the Development of Private Sector (ICD), International Islamic Trade Finance Corporation (ITFC), Islamic Corporation for the Insurance of Investment of Export Credit (ICIEC), and Islamic Research and Training Institute (IRTI), and Islamic Solidarity Fund for Development (ISFD) for poverty reduction.

The IsDB Group activities in Indonesia are aligned under the Member Country Partnership Strategy (MCPS) 2016-2020. The MCPS is a strategy document that guides the operations of the IsDB Group in its member countries over the medium term (3-5 years). In December 2014, IsDB Group established its Country Gateway Office (CGO) in Indonesia (www.isdb-indonesia.org). The CGO facilitates and galvanizes the cooperation of IsDB Group with all the stakeholders in Indonesia including the Government, private sector, academia, civil society, and development partners.

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