Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Investment  >>   Islamic bank stokes Indonesian growth
NEWS UPDATES Asean Affairs        12  May 2011

Islamic bank stokes Indonesian growth

Related Stories

May 10, 2011
Indonesia promises incentives for energy investors

May 2, 2011
Indo VP goes after China investments

April 28, 2011

Indonesian insurance industry keys on growing middle class

The Islamic Development Bank (IDB) on Wednesday agreed to provide as much as US$3.3 billion of financing through 2014 to speed Indonesia’s economic growth.

“We are focusing on poverty, health and infrastructure. In line with IDB’s strategic priorities, we are committing to provide soft loans for its member, including Indonesia,” bank president Ahmad Mohammed Ali said.

The Saudi Arabia-based bank’s Member Countries Partnership Strategy program helps its 56-member states raise living standards and improve the investment climate and human resources. The financing is Shariah compliant.

Some 34.7 percent of the funding to Indonesia is earmarked for the private sector, including small- to mid-sized businesses, followed by infrastructure at 26.3 percent, education and human resources at 19.8 percent and the rest for agriculture and rural development. Around two-thirds of the financing is targeted at Sumatra, Kalimantan and Sulawesi.

According to state estimates, Indonesia needs about Rp 1,600 trillion ($170.4 billion) in infrastructure investment from 2010-14 to meet its target of 7 percent growth by the end of the span, but the budget can only provide 30 percent of the funding.

“That’s why we invited the bank here – we need them to help plug the investment gap,” said Armida Alisjahbana, head of the National Development Planning Board (Bappenas).

Bambang Brodjonegoro, head of fiscal policy at the Finance Ministry, expected the loans to help harness regional potential, while Minister Agus Martowardojo said the funding would also support Shariah microfinancing.

The majority of the financing has already been finalized, with the IDB signing an agreement in March to provide $2.5 billion for 159 projects.

As part of the soft-loan package, $87 million has been allocated to expand Belawan port in Medan, as well as $102 million to help small farmers on Sumatra Island expand the coffee sector. The IDB is also making $159.45 million available to the National Community Empowerment Program (PNPM), and offering a total of $105 million in educational funding for Universitas Negeri Semarang, Universitas Padang and IAIN Sunan Ampel, an Islamic state college.

Morgan Stanley said on Wednesday that Indonesia would need to spend even more on infrastructure, pegging investment at $250 billion per year through 2015 to boost growth and tackle problems in distribution and transportation.

Total spending on infrastructure, both public and private, reached only 3.9 percent of gross domestic product in 2009. If such investment can be raised to 5.9 percent of GDP by 2015, growth can reach 7.2 percent. The economy expanded 6.1 percent in 2010.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    12  May 2011 Subsribe Now !
• Border observer deal now doubtful Subcribe: Asean Affairs Global Magazine
• Islamic bank stokes Indonesian growth Asean Affairs Premium
• NGOs push for end to dam project
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Najib addresses religious uproar
• San Miguel credit outlook cut

• Thai silk enters new era

• Retail war starts in Thailand

• Thai films score in Indonesia p

Asean Analysis    12  May 2011

Advertise Your Brand
• Myanmar remains “unchanged” Sponsor Our Events

Asean Stock Watch    12  May 2011

• Asean Stock Watch-May 12 p

Global News Impacting Asia    17 November 2010


• Bank of America sees Asian inflation


• Lloyd’s increases insurance push in Malaysia


• Wells Fargo analyst on euro


• Obama’s visit to Asia


ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand