Export Development Canada (EDC) has signed a Memorandum of Understanding (MoU) with PT Indonesia Infrastructure Finance (IIF) to accelerate Canada’s participation in infrastructure development in Indonesia.
The MoU was signed by Sven List, Senior Vice President, Corporate and International Group, George Monize, Vice-President, Indo-Pacific and Dr Reynaldi Hermansjah, President Director and Chief Executive Officer, IIF. The signing ceremony took place at IIF’s office on Sept. 27, on the margins of EDC’s Jakarta office representation opening. The MoU will facilitate collaborative activities including information exchanges, transaction facilitation (including co-lending), and joint outreach and knowledge sharing.
“Establishing our collaboration with IIF will enable us to do more, faster for Canadian exporters and corporate investors within the sustainable infrastructure sector while supporting the needs of Indonesia,” said Sven List, Senior Vice President, Corporate and International Group. “IIF brings strong market knowledge and expertise in structuring and financing infrastructure projects, including renewables. With both organizations’ leveraging their ESG principles and ability to provide capital support, we will contribute to sustainable infrastructure development in Indonesia.”
Indonesia’s ongoing need for infrastructure is a major area of opportunity for Canadian exporters and investors. Pre-COVID-19, Indonesia required more than $507 billion in infrastructure investment and activity continues to explode. While Canada has a long history of supporting commodity and airplane exports to Indonesia, there is a significant opportunity now for institutional investors eyeing infrastructure projects.
Similar to EDC, IIF sees opportunity on the horizon with this new partnership, for both Canada and Indonesia.
“We are honored to be the pioneering financial institution in Indonesia to collaborate with EDC, particularly given their noteworthy entry into Indonesia through this MoU Signing,” Reynaldi stated. “The MOU demonstrates our joint commitment to address Indonesia’s infrastructure needs, and our respective strengths will enable us to respond swiftly with a focus on sustainable energy, telecommunications and road development.”
Canadian exports to Indonesia are currently over $3 billion annually, but a recent EDC report entitled Markets of opportunity for Canadian exporters predicted average annual exports could continue to grow rapidly through 2030, and up to $11 billion by 2050, placing Indonesia among Canada’s Top 10 export markets. By 2040, Indo-Pacific economies are predicted to make up 50% of global GDP and about 40% of the world’s consumption.
About PT Indonesia Infrastructure Finance
IIF is a private non-bank financial institution, which is engaged in infrastructure financing and advisory services that are professionally managed and focused on commercially viable infrastructure projects. IIF was established on 15 January 2010 at the initiative of the Government of the Republic of Indonesia – Ministry of Finance of the Republic of Indonesia together with the World Bank Group, Asian Development Bank (ADB) and other multilateral institutions.
In its operations, IIF applies best practices based on international standards in providing credit, risk management, good corporate governance, and social and environmental protection standards to ensure the sustainability of infrastructure development in Indonesia.
For more information and to learn about IIF, visit www.iif.co.id.
