07/12/2018 | Press release | Distributed by Public on 07/12/2018 08:47
July 12, 2018
JAKARTA, INDONESIA - Today, Executive Vice President of the Overseas Private Investment Corporation (OPIC) David Bohigian and other U.S. government officials joined the President of the Jakarta Mass Rapid Transit (MRT) William Sabandar for a site visit to the Jakarta MRT. This is the first public stop by OPIC officials visiting Southeast Asia on a trip to promote U.S. investment in the region, strengthen partnerships, and find opportunities to work with regional allies on projects that drive economic growth and stability throughout the region.
'Investments in infrastructure are key drivers of economic growth that enhance connectivity and quality of life,' said Bohigian. 'The completion of the MRT will reduce traffic congestion and provide an efficient and safe mode of transportation for Jakarta's commuters. The Overseas Private Investment Corporation continues to invest in projects that develop free and open societies while adhering to the highest global standards. OPIC will continue to partner with Indonesia and other allies in the region to support transformative infrastructure projects like the MRT that will serve the people of Indonesia well into the future.'
The MRT is scheduled to open Phase 1 in early 2019 with 16 trains and 96 cars. The project was financed with support from Japan Bank for International Cooperation (JBIC). OPIC recently signed a Memorandum of Understanding with Japan's JBIC and Nippon Export and Investment Insurance (NEXI). OPIC, JBIC, and NEXI have coordinated support for several projects together including a private equity fund supporting the renewable energy value chain in India and South Asia. They continue to seek more joint opportunities for investment.
Since 1974, OPIC has committed $2.35 billion in finance and insurance across 116 projects in Indonesia, covering a range of sectors, from energy to healthcare. On July 2, 2018, President Joko Widodo inaugurated Indonesia's first wind plant in Sulawesi, Indonesia, which was supported by $120 million in OPIC financing.
OPIC is the U.S. government's development finance institution. As part of his National Security Strategy, President Trump highlighted the need for a modernized approach by the U.S. government to development finance to help grow aspiring partners, promote economic relationships, and increase investment in regions important to American interests.
The Overseas Private Investment Corporation (OPIC) is a self-sustaining U.S. Government agency that helps American businesses invest in emerging markets. Established in 1971, OPIC provides businesses with the tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries, and advances U.S. foreign policy and national security priorities. OPIC helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at home and abroad. OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity fund managers.
OPIC services are available to new and expanding businesses planning to invest in more than 160 countries worldwide. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers. All OPIC projects must adhere to best international practices and cannot cause job loss in the United States.