Jakarta. The Islamic Corporation for the Development of the Private Sector (ICD) and Indonesia Eximbank signed Tuesday a letter of intent for a $30 million line of finance facility.

The ICD is the private sector arm of the Islamic Development Bank (IsDB) Group. Under this partnership, Indonesia Eximbank -- also known as Lembaga Pembiayaan Ekspor Indonesia (LPEI) -- will use the facility to onward financing of eligible private sector enterprises whose operations have a strong development impact in the country. Indonesia Eximbank will focus on supporting small and medium enterprises (MSMEs), as well as large corporations whose operations have the potential to boost national export performance and the growth of export-oriented halal industries. 

“This proposed line of finance facility is not just another financing line; it is a landmark shariah-compliant transaction designed to increase access to capital and open new opportunities for private sector growth and development in Indonesia,” Mohammad Asheque Moyeed, Acting Director of Banking  Department of ICD, was quoted as saying in a press statement.

He added: “The facility aims to unlock new opportunities and serve as a catalyst for attracting greater participation from investors and financiers in our member countries and other international markets into  Indonesia's dynamic economy. It reinforces our commitment to expanding and  diversifying Islamic finance globally.” 

Indonesia Eximbank expressed its appreciation for ICD’s proactive engagement, emphasizing that the proposed facility will be efficiently channeled to finance eligible businesses. They also pledged to use the facility to unlock new opportunities for Indonesian enterprises and contribute to the advancement of export-oriented halal businesses and Islamic finance.

“This collaboration underscores our shared commitment to strengthening Indonesia’s export sector and expanding SME access to financing. We believe this facility will support the growth of export-oriented halal industries and further strengthen Indonesia  Eximbank’s role as the Special Mission Vehicle of the Ministry of Finance in promoting national businesses, particularly halal products, in the international market,” Anwar Harsono, the Managing Director of Finance, Operations, & Information Technology of  Indonesia Eximbank, said.

ICD has a strong track record of providing Line of Finance facilities to financial institutions across its 56 member countries. This partnership with Indonesia Eximbank represents a strategic step in expanding ICD’s footprint and growing impact in its member countries within the ASEAN region and promoting inclusive and sustainable private sector growth.