INDONESIA SEES IDB AS IMPORTANT DEVELOPMENT PARTNER by Fardah

   Jakarta, May 21, 2016 (Antara)- The 41st Annual Meeting of the Board of Governors of the Islamic Development Bank (IDB) Group, organized successfully in Jakarta on May 15-19, was attended by the finance and economy ministers of the 57 IDB member countries.

        The participating countries, including Guyana, the newest member of the IDB, are all member nations of the Organization of Islamic Cooperation (OIC).

        In line with its slogan - "Providing Resources, Fighting Poverty and Restoring Dignity" - the IDB has been financing programs aimed at improving social  welfare, particularly in underprivileged Muslim majority countries.

         IDB Group President Dr. Ahmad Mohamed Ali explained that the Bank has accomplished significant achievements, and launched important initiatives, such as its contribution to the Trans-Sahara Road, the resilience and food security program for the African Sahel countries, and energy and roads projects that contributed towards ending the isolation of remote areas in Africa and Central Asia.

        Indonesian Vice President M Jusuf Kalla, in his opening remarks, said cooperation between Indonesia and IDB remained the focus to strengthen economic growth and address inequality.

        In the 41 years since the beginning of Indonesia's membership of the IDB, the Bank has disbursed more than US$2.5 billion to finance projects in key development sectors of Indonesia, such as infrastructure, agriculture, education and health.

         Indonesia's Finance Minister Dr. Bambang Brodjonegoro, in his address, described the IDB as an important partner for Indonesia's development.

        The minister was particularly delighted to note that most of the IDB's financing activities have been in line with national development priorities.

        Indonesia and the IDB have managed to complete the first Member Country Partnership Strategy (MCPS) for the period of 2011-2014 and were successful in financing key development areas such as infrastructure and private sector development.

         "This success is expected not only to be replicated but also to be improved in the current MCPS of 2016-2020," the minister stated.

        On the sidelines of the meeting, on May 17, the Indonesian government and the IDB signed the MCPS for the next four years.   
   The IDB Group has agreed to a $824 million loan commitment to be extended to Indonesia, which is part of the MCPS agreement for the 2016 to 2020 period.

         "First will be a project on slum area renovation, worth about $365 million, followed by educational projects for four Islamic universities and other higher learning education institutions worth $176.5 million. The third project will be for electricity network expansion and development, valued at $330 million," he explained.

       Indonesia's National Development Planning Minister and Chairman of the National Development Planning Board Sofyan Djalil on May 17 disclosed that Indonesia would receive a loan amounting to over $5 billion from the IDB, within the framework of MCPS to support the development of physical infrastructure, an inclusive sharia compliant financial sector, and support for regional integration directed toward Sustainable Development Goals (SDGs).

        He informed that the IDB now has a representative office with a strong organization in Jakarta.

         The financial institution considers Indonesia as a country that could play a bigger role in the IDB, he noted.

         Overall, on the last day of the annual meeting, the IDB Group and member states signed agreements to fund development programs worth $1.6 billion. 
   As many as 14 countries received funding, including Indonesia at $824 million, Gambia at $280 million for a rural health program, Cameroon at $157 million for a road and transportation project, and Chad at $152 million for a road and transportation project.

        The other recipients are Gabon, which received $120 million for a basic health service program, Iran $104 million for an irrigation network program, Burkina Faso $99.5 million for a road and agricultural development, and Nigeria, which was loaned $84 million for electrical power projects.

        Concluding the meeting, Ahmad Mohammed Ali said: "The session this time is one of the most successful annual sessions and everyone looks happy with the services. Congratulations on the success."
    He further stated that the Bank will focus its various programs on the development of younger generations and infrastructure and a framework for strategic development, in line with the SDGs in 2030.

       In addition, it is also committed to promoting the application of a sharia-compliant financial system for each of its development programs.

        The IDB is also committed to supporting the Indonesian government in facing a wide range of development challenges, particularly in infrastructure development, poverty eradication and quality improvement.

        In a bid to promote research and knowledge dissemination in Islamic finance, the Islamic Research and Training Institute (IRTI) of the IDB Group on May 19 signed three Memoranda of Understanding with three Indonesian universities.

       The IRTI signed the MOUs separately with the University of Indonesia (UI), the  University of Airlangga and the Bogor University of Agriculture (IPB).

       Under the agreements, the IRTI will collaborate with each of the universities in providing Islamic finance literature and development of Islamic finance human capital, as well as assist the universities to serve as centers of Islamic economics and finance research.

         "The IRTI is determined to continue providing the necessary impetus towards promoting scholarship and research in Islamic finance in IDB member countries as well as globally," IRTI Director General Prof. Mohamed Azmi Omar said after signing the agreement with rectors of the three universities. ***3***
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(T.F001/A/BESSR/A. Abdussalam) 21-05-2016 23:21:43