PT Indonesia Infrastructure Finance (IIF) and Export Development Canada (EDC) have formalized a collaboration to expedite infrastructure financing in Indonesia. The memorandum of understanding (MoU) was signed on September 2023 at the IIF’s offices in Jakarta’s Sudirman Central Business District. IIF and EDC have agreed to collaborate in exploring fresh opportunities related to financing and advisory services for Canadian businesses operating in Indonesia.
EDC highlighted that the partnership presents promising opportunities for the mutual benefit of both Canada and Indonesia. The persistent demand for infrastructure in Indonesia presents a substantial opportunity for Canadian exporters and investors. Prior to the onset of Covid-19, Indonesia sought over USD 507 billion in infrastructure investment, and the momentum in this sector remains strong. While Canada has traditionally been involved in supporting exports of commodities and airplanes to Indonesia, there is currently a noteworthy opportunity for institutional investors interested in infrastructure projects.
Presently, Canadian exports to Indonesia surpass USD 3 billion each year. However, a recent report from EDC titled “Markets Opportunity for Canadian exporters” forecasts a consistent and rapid growth in average annual exports from Canada to Indonesia, potentially reaching up to USD 11 billion by 2050. This projection could position Indonesia among Canada’s Top 10 export markets. By 2040, it is anticipated that Indo-Pacific economies will constitute approximately 50% of the global GDP and contribute to about 40% of the world’s consumption.
(Source: The Jakarta Post & Yahoo! Finance)