PT Indonesia Infrastructure Finance (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 under regulation (PMK) No. 100/PMK.010/2009 dated May 27, 2009 with a focus on investing in commercially feasible infrastructure projects in Indonesia and to encourage private sector engagement in the country’s infrastructure development.
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. Supported by a strong capital base from its shareholders and 25-year subordinated loan on-lending facilities from the World Bank and the Asian Development Bank, IIF is well positioned to assist in bridging the gaps in the country’s requirements for infrastructure financing.
Designed as a catalyst for this particularly unique but strategically vital sector, IIF also plays a distinctive role in providing advisory services and supporting 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. This is in line with IIF’s determination to emerge as an experienced and respected repository of knowledge and skills in the field of commercially viable infrastructure project development and financing, including those projects under the PPP model.
IIF applies international-standard best practices in terms of social and environmental safeguards and exercises good corporate governance in order to promote more sustainable infrastructure project development in Indonesia.`