Indonesia, Jakarta, December 10, 2009—IFC,
a member of the World Bank Group, will provide up to $70 million to expand
Indonesia’s PT Jakarta International Container Terminal, which is critical
for the country’s trade competitiveness and private growth as it will
reduce costs and transit times for exports and the distribution of goods.
IFC’s financing consists of a $30 million loan for IFC’s own account
and an additional $40 million syndicated from HSBC. The investment
will help improve the terminal’s efficiency and expand its capacity as
a major Indonesian port, which handles about 30 percent of the country’s
exports and imports. The expansion is expected to satisfy medium and long-term
growth in container volumes to improve the transportation of supplies for
small, medium, and large businesses.
“As the world’s largest archipelago nation, Indonesia relies heavily
on an efficient and well-run sea transportation system to compete economically,”
said Karin Finkelston, IFC Director for East Asia and the Pacific. “We
are pleased to partner with the Jakarta International Container Terminal
as part of IFC’s commitment to improving infrastructure and developing
the private sector. IFC’s investment will not only strengthen Indonesia’s
port sector but also attract private sector investment in infrastructure,
which has lagged far behind the needs.”
JICT operates the largest container terminal in Indonesia. It is located
at the Tanjung Priok Port in Jakarta, Indonesia, and serves the greater
Jakarta area and its population of 14 million. JICT is 51 percent
controlled by Hutchison Port Holdings, the world’s leading port investor,
developer, and operator. The remaining 49 percent is held by Indonesian
state-owned port operator, PT Pelabuhan Indonesia II.
“In addition to the US$ 70 million of loan finance being provided by IFC
and HSBC, JICT is funding the remaining US$ 90 million of this US$ 160
million expansion project out of its own funds, thereby clearly demonstrating
JICT’s principal shareholders, HPH and, its highly valued partner, Pelindo
II’s long-term commitment to the success and future of JICT”, said James
Tsien, Executive Director of the Hutchison Port Holding Group.
IFC is the only international financial institution focused exclusively
on the private sector, the engine of sustainable development in emerging
markets. Along with the World Bank Group’s International Bank for Reconstruction
and Development, IFC is currently seeking a capital increase to
strengthen its ability to create opportunity for the poor in developing
countries—including by improving trade infrastructure in Indonesia.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $14.5
billion in fiscal 2009, helping channel capital into developing countries
during the financial crisis. For more information, visit www.ifc.org.