The Islamic Development Bank Group has agreed to loan Indonesia up to $5.2 billion for development programs until 2020, according to a joint statement issued after the IDB’s annual meeting in Jakarta this month. The Saudi based lender said it could also lend directly to Indonesia’s state-owned enterprises with sovereign guarantees.
Indonesia’s Finance Minister Bambang Brodjonegoro said the funds would help finance several projects, including improvement of slum areas, electricity transmission and developing Islamic finance.
Indonesia, together with the IDB and the government of Turkey will also set up an Islamic infrastructure bank, which could help finance projects in IDB member countries.