Indonesian Minister of Finance Sri Mulyani Indrawati and US Secretary of Treasury Janet Yellen signed the US$698 million (IDR10.2 trillion) Indonesia Infrastructure and Finance Compact.
The compact is a five-year agreement between the US government’s Millennium Challenge Corporation (MCC) and the Government of Indonesia. Contributions in the compact is valued at IDR9.5 trillion (US$649 million) from the US and IDR718 billion (US$49 million) from the Government from Indonesia, according to a statement issued by the US Embassy in Jakarta on Friday (14/4).
The Indonesia Infrastructure and Finance Compact aims to improve access to finance for the country’s transport and logistics infrastructure and MSMEs, especially those owned by women.
“Indonesia is taking crucial action to build a robust financial environment, promoting economic growth that benefits everyone,” Minister Indrawati stated.
“I am excited to see how our joint efforts will continue to strengthen economic security for current and future generations of Indonesians,” she stated.
The signing ceremony of the Compact was held at the International Monetary Fund (IMF) Office in Washington D.C on Thursday (13/4), with representatives from the US and Indonesian government.
“This partnership represents the US’ and Indonesia’s shared belief in democracy and innovation-driven economic growth,” Secretary Yellen, who is Vice Chair of MCC’s Board of Directors, stated.
“The compact will support Indonesia’s Just Energy Transition Partnership and the development of climate-resilient infrastructure that meets the standards under the Partnership for Global Infrastructure and Investment (PGII) – jointly announced by our presidents at the G20 Leaders’ Summit,” Yellen added.
MCC Chief Executive Officer (CEO) Alice Albright, who joined the signing ceremony, added that she was proud of MCC’s nearly two-decade-old relationship with the Government of Indonesia.
“With this investment, we will work together on projects with, in total, over US$1 billion,” Albright stated.
According to Albright, the compact will focus on sustainability and scalability, improving the country’s resilience against climate change and other external shocks while creating more opportunities for business owners to access market capital.
