IIF A&B Loan 2 (IFC-37299)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
Countries
  • Indonesia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 23, 2015
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
PT Indonesia Infrastructure Finance
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 14, 2018

Disclosed by Bank Oct 21, 2015

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to IFC website, the project consists of a senior debt package to PT Indonesia Infrastructure Finance in Indonesia. The Project will support the Company’s lending program for a pipeline of infrastructure projects in Indonesia. The development impact of IFC's investment in the Project is expected to be high given that it will:

1. Support the Government of Indonesia's efforts in increasing investment in infrastructure projects, both for increasing urbanization as well as rural integration;
2. Improve access for the Indonesian population to infrastructure such as electricity, water, transportation, telecommunications, etc.;
3. Continue know-how transfer in the areas of Environmental and Social ("E&S"), risk management and project finance underwriting;
4. Bring economic benefits to the country by dividends generated by the infrastructure projects as well as taxes levied to the project companies;
5. Promote job creation at the project company that receives financing from the Company as well as in businesses that provide services to such project company.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

This project consists of a senior debt package to PT Indonesia Infrastructure Finance. The proposed investment consists of up to USD 15 million of A Loan for IFC’s own account, and up to USD 135 million of B Loan.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The Company was established in January 2010 as a key element of strategic development by the government of Indonesia and a group of multilateral agencies to address the constraints on the flow of private investment in infrastructure.

Shareholders of the Company are PT Sarana Multi Infrastruktur (Persero) (“SMI”) with 30.00%, Asian Development Bank (“ADB”) with 19.99%, Deutsche Investitions-Und Entwicklungsgesellschaft mbH (“DEG”) with 15.12%, Sumitomo Mitsui Banking Corporation (“SMBC”) with 14.90%, and International Finance Corporation (“IFC”) with a 19.99% ownership.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Project Contatcs: Andi Faizal/Nastantio W. Hadi
PT Indonesia Infrastructure Finance
Office Address: The Energy Building 30th Floor, Sudirman Central Business District, Lot. 11A
Jl. Jend. Sudirman Kav.52-53 Jakarta 12190 Indonesia
Phone No.: 62-21-29915060

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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How it works