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Illustration of US dollar (CNN Indonesia / Hesti Rika).
Indonesia will get investment of 3.5 trillion from the US for the next 5 years
Jakarta, Indonesia - It is reported that Indonesia will get an investment from Overseas Private Investment Corporation (OPIC) as long as the project offered truly matches the OPIC priority sector as the conditions are sufficient to obtain funding or bankable to the US.OPIC intends to channel the investment funding in Indonesia to reach IDR 3.5 trillion in the next five years or double the total investment of the previous year.
Eric Jones, OPIC Chief of Staff, said that, OPIC investment funding in Indonesia had only reached USD 125 million last year, and he hopes funding to Indonesia could increase to USD 250 million or equivalent to IDR 3.5 trillion in the next 2024 to develop the business in Indonesia.
Jones stated that, there are two reasons for the increase in investment funding to Indonesia. First, Indonesia is part of the Indo-Pacific region which is one of the focuses of OPIC funding. This region was chosen because there are still low-income or lower-middle-income countries which are the main focus of OPIC. Second, OPIC plans to transform into the US International Development Finance Corporation (DFC) after the US government approved the Law on Better Utilization of Investments in Development last year.
Eric also stated that, the change in OPIC to become DFC, could also make his institution free to channel funding to other countries. OPIC can also take part in conducting project feasibility studies, giving priority to projects depending on their risk profile, and relaxing the provision that now companies with 25 percent of US ownership in other countries are eligible for funding.
It is informed that, OPIC funding is indeed limited to investment by US companies in other countries. According to Jones, OPIC really selects the type of investment that can be financed strictly because the investment must meet environmental feasibility standards.
The investment also cannot exclude natural sustainability and ignores future generations with the misuse of funds, and Indonesia is one of the selected countries and has a potential to become a success and improved country for children and adults.
Source: https://www.cnnindonesia.com/ekonomi/20190624165029-92-405933/lembaga-as-bakal-gelontorkan-investasi-ke-ri-rp35-triliun
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