ASIATODAY.ID, JAKARTA – The United States welcomes the launch of the $649 million [over IDR 10 trillion] Indonesia Infrastructure and Finance Compact, a five-year grant between the Millennium Challenge Corporation (MCC), a U.S. government foreign aid agency, and the Government of Indonesia.
The MCC grant is expected to double U.S. development assistance to Indonesia over the next five years, augmenting development assistance from the U.S. Agency for International Development (USAID) of approximately $130 million annually.
“The focus of this compact — blended finance for public infrastructure, and access to finance for women-owned small businesses — is a testament to the ingenuity and sophistication of the U.S.-Indonesia partnership,” said U.S. Ambassador to Indonesia Kamala S. Lakhdhir.
“Indonesia needs trillions of dollars of investment in clean and sustainable infrastructure to support its rapidly growing economy. Mobilizing private capital through blended finance will be critical.” Ambassador Lakhdhir continued, “MSMEs are the backbone of Indonesia’s rapidly growing economy, and the vast majority are owned by women. Better access to finance will help them grow their small businesses.”
Joining Ambassador Lakhdhir at a September 4 launch event in the Energy Building in Jakarta’s Sudirman Central Business District were: MCC Vice President for Compact Operations Cameron Alford; Indonesian Deputy Minister of Finance Thomas Djiwandono; Ministry of National Development Planning/Bappenas Secretary Teni Widuriyanti; and Maurin Sitorus, the executive director of MCA-Indonesia II, which will implement the Compact on behalf of the Government of Indonesia.
The MCC compact, which includes a $49 million co-investment from the Government of Indonesia in addition to the $649 million MCC grant funding, will assist the Government of Indonesia in improving access to infrastructure financing —particularly transport and logistics infrastructure—and support for women-owned small businesses. This project, developed in close coordination with Indonesia, furthers U.S. efforts to build climate-resilient transportation infrastructure and support Indonesia’s development goals while contributing to the objectives of the Partnership for Global Infrastructure and Investment.
“Quite simply, this is about people,” said Ambassador Lakhdhir. “It’s about helping people lead more prosperous lives and growing Indonesia’s economy, in partnership with the United States.” The Ambassador added, “We have lots of work to do. Today, we celebrate. Tomorrow, and for the next five years, we work.”
On the 75th anniversary of diplomatic relations, the United States and Indonesia continue to deepen political, economic, and security cooperation and expand the partnership to address emerging challenges. The initiation of the Indonesia compact marks another important step in advancing a bilateral relationship that delivers for Indonesians and Americans alike. (AT Network)
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