ASEAN, Islamic Banks to Found $ 4 Billion in Indonesia Projects

The Asian Development Bank (ADB) and the Islamic Development Bank (IDB) have signed a co-financing agreement to raise up to US$4 billion in fresh funds to finance projects in a number of member states, including Indonesia in the next three years.

Under the agreement, the two international institutions will make available US$2 billion each for financing infrastructure projects covering irrigation and urban sectors. In certain countries, the education, health, etc. sectors may have a chance of securing financing from the agreement.

The agreement would also make it possible for the adoption of a new platform in which the two institutions could raise third party funds from investors in other member states, ADB Director General for Central and West Asia Juan Miranda said. Added, IDB Director for Asia Walid Abdelwahab, “It is consistent with the ADB's 2020 strategy and the IDB's 1440 Hijrah vision.”