MCC CEO Lauds Progress on Indonesia Infrastructure and Finance Compact

This MCC grant aims to improve both the quantity and quality of Indonesian infrastructure, as well as increase access to financing for small and medium enterprises.

During the visit, CEO Albright, alongside U.S. Ambassador-Designate to Indonesia Kamala Lakhdhir, celebrated the signing of a grant agreement with the Indonesia Infrastructure Finance (IIF) that will catalyze blended finance options for the public and private sectors to deliver and sustain more public infrastructure projects. She also met with Indonesia’s Vice Minister of Finance Thomas Djiwandono and Minister of National Development Planning Suharso Monoarfa, deepening the mutual commitment to improve the country’s financial and lending environment.

Albright also traveled to Riau Islands Province to tour the Kuala Riau Port, which is under consideration for rehabilitation as part of the MCC partnership. If selected, this program would increase passenger and cargo transport from the Kuala Riau Port to other islands and nearby Singapore. Meeting with local government officials, businesses, and residents, she gained insight into the ways port facility upgrades will increase tourism and make transport easier for the community.

The culmination of CEO Albright’s trip was a fireside discussion with Indonesian women leaders in government and business about financial inclusion and entrepreneurship. The panel focused on the importance of women in the Indonesian economy and on how digitalization can support women-owned small and medium enterprises.

MCC’s Indonesia Infrastructure and Finance Compact is expected to launch this year on September 5. The $649 million grant, combined with an additional $49 million contribution from the Government of Indonesia, aims to improve access to finance for the country’s transport and logistics infrastructure and small and medium enterprises, especially those owned by women.

The grant follows a $55 million Threshold Program in 2006 that implemented a national immunization strategy, built the capacity of health care workers, and reduced corruption. This was followed by the $474 million MCC-Indonesia Compact focused on improving public procurement, clean energy deployment, and nutrition, which concluded in 2018.