World Bank Group member IFC and PT CT Corpora (CT Corp) announced their first investment transaction together, wherein IFC is providing $275 million loan to PT Trans Corpora (Trans Corp), CT Corp`s wholly-owned subsidiary.
The aim is to support the growth of its retail, tourism, and property operations across the country, based on a statement received here on Tuesday.
IFC`s investment will help Trans Corp add new retail stores across 25 cities by 2025. This will subsequently boost the growth of modern retail infrastructure across the country and improve consumers` access to a range of quality products.
It will further develop local supply chains, involving a larger base of local suppliers and Small and Medium Enterprises (SMEs).
Trans Corp`s expansion of its retail operations is expected to create over 30 thousand new jobs in Indonesia.
In addition, working with over six thousand suppliers -- nearly 70 percent being SMEs -- will create some 23 thousand indirect jobs in areas, such as farming and distribution.
"We are honored to partner with a global player, such as IFC, with extensive global experiences, extensive networks, and knowledge. IFC`s support will help us expand and serve a growing number of customers with innovative products and services while also investing in their future by adopting more sustainable business practices," CT Corp Chairman Chairul Tanjung stated.
In line with the Government of Indonesia`s strategic priority to develop the country`s tourism sector, supported by a World Bank loan of $300 million, IFC`s investment will also help Trans Corp expand its tourism operations.
In addition to its existing properties, the Group has an agreement with Accor, a global hospitality company, to develop 30 new hotels, adding nearly six thousand new rooms across the country.
Furthermore, addressing the needs of the middle-income population as well as the country`s housing deficit, Trans Corp is developing more than 10 thousand affordable apartments across multiple locations.
Trans Corp is also committed to promoting resource-efficient buildings -- worth at least $275 million -- that meet IFC`s EDGE (Excellence in Design for Greater Efficiencies) Green Building standard.
The building sector is Indonesia`s third-largest final energy consumer and accounts for approximately 27 percent of the total final energy consumption. If left unmitigated, buildings are likely to consume nearly 39 percent of the total energy by 2030.
"IFC is delighted to engage with a leading Indonesian Group like CT Corp. This financing package aims to maximize Indonesia`s private sector-led development and support one of its key goals of creating jobs," IFC`s Regional Vice President for Asia & Pacific Nena Stoiljkovic stated.
"By embracing innovation and inviting private sector investment, Indonesia can boost economic growth through a pipeline of sustainable and diverse projects," IFC`s partnership with CT Corp began with a memorandum of understanding signed by Philippe Le Houerou, CEO of IFC, and Chairul Tanjung in October 2018. (ant)