Tokyo, May 20, 2019—The International
Finance Corporation (IFC) and the Government of West Java Province, today
signed a letter of intent to collaborate on the development and revitalization
of infrastructure in Indonesia’s most populous province.
Both parties are determined to ensure West
Java’s development is managed in the most sustainable way possible and
IFC’s desire to invest in the province’s infrastructure will help to
ensure this is achieved.
The letter of intent, the first step towards
a formal agreement, was signed in Tokyo by West Java’s Governor, Ridwan
Kamil and Vivek Pathak, IFC’s Director for East Asia and the Pacific.
The two are currently attending the U20 Mayors Summit, which brings together
mayors and senior delegates from cities and provinces across the globe
with the aim of raising the profile of urban development priorities ahead
of the G20 Summit in June.
“Urbanization is playing a critical role
in economic development. We are already witnessing rapid urbanization in
West Java. Cities currently generate 70% of global carbon emissions and
their growth must be managed in such a way that it does not compound climate
change,” said Vivek Pathak, IFC Regional Director for East Asia and the
Pacific. “Working with the authorities in West Java to provide advice
on funding infrastructure projects and corporate governance practices will
help to mitigate climate impacts,” he continued.
The high-level agreement outlines the advisory
services that IFC may provide to the West Java Government. They include
preparing strategic infrastructure projects for private sector funding,
implementing funding schemes for infrastructure projects and strengthening
the corporate governance practices of regionally-owned enterprises in West
Java. The Government has already highlighted transport, water and waste
management and sustainable infrastructure such as green buildings as priorities.
“We are determined to improve economic inclusion
and development in West Java through collaboration between government,
regional owned enterprises and private-sector. Working with an organization
like IFC, which has the financial and managerial experience and shares
our aspirations, will ultimately improve West Java's competitiveness in
the national and international level,” said Ridwan Kamil, Governor of
IFC—a sister organization of the World Bank
and member of the World Bank Group—is the largest global development institution
focused on the private sector in emerging markets. We work with more than
2,000 businesses worldwide, using our capital, expertise, and influence
to create markets and opportunities in the toughest areas of the world.
In fiscal year 2018, we delivered more than $23 billion in long-term financing
for developing countries, leveraging the power of the private sector to
end extreme poverty and boost shared prosperity. For more information,
IFC’s Cities Initiative supports
efforts to build inclusive, safe, resilient, and sustainable cities that
open new markets and create opportunities for all. Over
the last 15 years, IFC has invested more than $8 billion across more than
250 basic urban and social infrastructure projects.