As prepared for delivery

Transcription

1 As prepared for delivery Remarks Sarvesh Suri, IFC Indonesia Country Manager Annual Results Press Conference IFC in Indonesia Jakarta, 12 September 2013 (about 780 words, approximately 6-7 minutes) Good morning. Thank you Karin, and thank you all for being here. As Karin mentioned, Indonesia is a very important country for IFC in East Asia Pacific. I cannot express strongly enough that we are fully committed to Indonesia s sustainable economic growth especially during these challenging times. Karin mentioned that our total investment has jumped by almost 50 percent to $438 million during the last fiscal year. Most of this investment, $336 million, went to manufacturing, agribusiness and services companies. $58 million went to infrastructure and $44 million to financial markets. During this current fiscal year, we will play an even stronger role in supporting infrastructure development through direct investments and public-private partnerships. 1

2 Our involvement in the Indonesian financial markets focuses on promoting financial inclusion with a strong emphasis on micro, small and medium enterprises and women entrepreneurs. We re also focusing on strengthening the Indonesian financial system. All these infrastructure, financial market reform, support for small and medium enterprises that make up 90 percent or more of the Indonesian economy are critical in order for the country to emerge from the current economic situation. We are reaching out to our clients to find out how the current economic climate is affecting them, if at all. We ve offered them our assistance in case they need it. So far, most of them are in a good financial health. So yes, we are committed to the growth of Indonesia s private sector and its sustainable economic development. Together with the World Bank, we are also working closely with the Indonesian government. Building on several years of IFC support, Bank Indonesia issued the branchless banking/ agent banking principles in May of this year. 2

3 Bank Indonesia has a pilot project in branchless banking with 5 banks BTPN, Bank Sinar Harapan Bali, CIMB Niaga, Bank Mandiri and BRI -, 3 of which are IFC s existing clients. This initiative will transform the mobile banking sector and significantly improve financial inclusion for many Indonesians. IFC also supported Bank Indonesia in issuing a long-awaited regulation in February that now allows private credit bureaus to operate in Indonesia. Private credit bureaus will provide access to timely, credible and objective information on borrowers and also help financial institutions recover loans. Having strong credit bureaus is essential, not only for individual prosperity, but also to a country s overall economic growth. As you all know, the Indonesian government has set targets in both the RPJMN in English called the National Medium-Term Development Plan and the MP3EI (in English, the Masterplan for the Acceleration and Expansion of Indonesia s Economic Development Plan). 3

4 The private sector will play a key role in financing both plans and it is our business to support the private sector. For example, last fiscal year IFC invested in and mobilized funds for PT Moya Indonesia, providing clean water for many Indonesians. Karin mentioned this already. Sustainability makes good business and for us in IFC, it is a key consideration in the investment decisions we make. Good corporate governance standards and practices help to improve the competitiveness and sustainability of businesses, fostering long-term economic development. Especially against the background of the current crisis, Indonesia needs to have a fundamentally sound financial system to ensure its long-term prosperity. Therefore, IFC is working with Indonesia s financial services authority OJK to develop a Corporate Governance Road Map to identify gaps and challenges in Indonesia s regulatory framework. 4

5 The road map will cover areas such as shareholder rights, protection of minority shareholders, corporate board practices, and disclosure and transparency. With support from IFC, OJK will also finalize the Indonesia Corporate Governance Manual. The manual is a tool that IFC has developed in many other regions to provide best practice guidelines to practitioners, board members and policymakers. Sustainable development cannot be achieved without full participation of women. IFC made a loan and equity investment of $9 million in Mitra Bisnis Keluarga Ventura [pronounce: Mitra Bisnis Kelooargaa], an Indonesian lender focused on providing financing to women-owned small businesses. Through this investment, we help Indonesian women get greater access to financial services to improve the quality of life for their families. Turning to climate change now. We believe that promoting green buildings is not only essential for a sustainable future, but also makes smart business sense. 5

6 IFC has advised the Indonesian government on developing a green-building code that set energy- and water-efficiency requirements for large commercial and high-rise residential buildings in cities. The Jakarta Green Building Code took effect at the end of April. Going forward, we will scale up our work in infrastructure and promote sustainable business practices for companies competitiveness, thus supporting Indonesia s sustainable economic growth. Thank you. I am happy to answer your questions. 6