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.

About IFC
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.