IIF USD Loan (IFC-39160)

Regions
  • East Asia and Pacific
Where the impacts of the investment may be experienced.
Countries
  • Indonesia
Where the impacts of the investment may be experienced.
Specific Location
Nation wide
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
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
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 9, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
INDONESIA INFRASTRUCTURE FINANCE, PT
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Ring Fence
  • No Restrictions
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank, sometimes for a specific lending purpose. A "ring fence" is another name for this specific purpose. These funds are then used for lending by the financial intermediary to client companies or individuals.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 14, 2018

Disclosed by Bank Jul 5, 2017


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Project Description

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 Project is expected to create development impact by i) increasing the number of infrastructure projects achieving financial close; ii) increasing funding available for infrastructure projects and iii) increasing support to private and public companies through advisory services from IIF. The proposed Project would help: (i) reduce the infrastructure gap with long-term funding that is consistent with the underlying cash flow profile of the projects (ii) alleviate the constraints that infrastructure bottlenecks impose to competitiveness, growth and creation of jobs; (iii) support the delivery of services including water, sanitation, and electricity; (iv) provide inclusion and connectivity; and (iv) provide broader economic benefits generated through taxes levied on project companies and indirect impacts through higher company growth and more efficient operations. The project will allocate a portion of the proceeds to renewable energy and other green infrastructure projects, thereby boosting sustainable development in Indonesia.

Investment Description

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.

Financial Intermediary
Financial Intermediary: A commercial 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 Actor Relationship

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

Private Actors Description

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.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Indonesia Infrastructure Finance Investor Finance invests in Cikampek-Palimannan Toll Road (116KM) PPP Refinancing Client Transport
Indonesia Infrastructure Finance Investor Finance invests in Indonesia Republic Parent Company Industry and Trade
Indonesia Infrastructure Finance Investor Finance invests in Lintas Marga Sedaya PT Client Transport
Indonesia Infrastructure Finance Investor Finance invests in Malaysia Parent Company Transport
Indonesia Infrastructure Finance Investor Finance invests in Plus Expressways Parent Company Transport
Indonesia Infrastructure Finance Investor Finance invests in PT Bajradaya Sentranusa Parent Company Energy
Indonesia Infrastructure Finance Investor Finance invests in PT Baskhara Utama Sedaya Parent Company Transport
Indonesia Infrastructure Finance Investor Finance invests in Pt Jasamarga Jalanlayang Parent Company Transport
Indonesia Infrastructure Finance Investor Finance invests in PT Metha Adhya Tirta Umbulan Parent Company Water and Sanitation
Indonesia Infrastructure Finance Investor Finance invests in Pt Prima Terminal Petikemas Client Industry and Trade
Indonesia Infrastructure Finance Investor Finance invests in PT UPC Sidrap Bayu Energi Client Energy
Indonesia Infrastructure Finance Investor Finance invests in Star Energy Geothermal Parent Company Energy
Indonesia Infrastructure Finance Investor Finance invests in UPC Energy Group Parent Company Energy
Indonesia Republic Parent Company Industry and Trade owns Pt Prima Terminal Petikemas Client Industry and Trade
Malaysia Parent Company Transport owns Lintas Marga Sedaya PT Client Transport
Plus Expressways Parent Company Transport owns Cikampek-Palimannan Toll Road (116KM) PPP Refinancing Client Transport
PT Baskhara Utama Sedaya Parent Company Transport owns Cikampek-Palimannan Toll Road (116KM) PPP Refinancing Client Transport
UPC Energy Group Parent Company Energy owns PT UPC Sidrap Bayu Energi Client Energy

Contact Information

Project Contact: Andi Faizal
PT Indonesia Infrastructure Finance
Telephone No.: 62-21-29915060
Office Address: The Energy Building 30th, SCBD, Lot. 11A, Jl. Jend. Sudirman Kav.52-53 Jakarta 12190 Indonesia
Website: www.iif.co.id

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/