The International Finance Corporation (IFC), a member of the World Bank, along with eight banks are set to provide syndicated loans of US$150 million for the Indonesia Infrastructure Finance (IIF).

The IFC will provide US$15 million with a 5-year tenure and the remaining US$135 million will be provided by the other syndication members with a 3-year tenure. ANZ Bank has been appointed as the underwriter.

IIF was established on January 15, 2010 as a result of an initiative by the Government of Indonesia. IIF was structured
 as a private non-bank financial institution in the form
 of a cooperation with World Bank, Asian Development Bank (ADB) and other international multilateral agencies.

IIF provides long-term fund-based products such as senior loans, mezzanine finance and equity participations, in addition to non-fund-based products such as guarantees and fee-based services, and thereby provides an important additional source of funding for infrastructure projects 
in Indonesia.

IIF also provides advisory services and support to the Indonesian Government in infrastructure policy making by providing transactional advisory services to public sector clients for the procurement of infrastructure services under the public private partnership (PPP) model.

Since its active operating period in 2012, IFF has provided more than US$400 million and expects to disburse $700 million by the end of 2016.

IIF president director Sukatmo Padmosukarso stated:

“The projects will include the development of new seaports in Makassar, the expansion of Tanjung Priok Port and Soekarno-Hatta International Airport, as well as the Palapa Ring, a 50,000 kilometer fiber-optic cable project.”