Good morning!
I am delighted to welcome you to the signing of the Indonesia Infrastructure and Finance Compact. Thank you, Secretary Yellen, for your leadership – both as Vice Chair of MCC’s Board of Directors and for continuing to deepen the United States’ partnership with Indonesia, through initiatives such as JET-P.
Welcome Minister Mulyani, Ambassador Roeslani, Secretary Taufik, and distinguished members of the Indonesia delegation. Country ownership is at the heart of MCC’s work and this investment would not be possible without your leadership and steadfast support. And to Martha Bowen, Jonathan Brooks, Chloe Adcock and the dozens of dedicated individuals on MCC’s Indonesia Country Team who worked tirelessly to get us to this point, thank you.
MCC’s partnership with Indonesia began nearly 20 years ago – first through a $55 million threshold program and subsequently through a $474 million compact. Together we: tackled corruption, modernized government procedures, improved health and nutrition, expanded sustainable energy, and strengthened natural resource management.
Today marks yet another milestone in the longstanding relationship with our strategic partner in the region. President Biden announced the successful completion of our negotiations at the G20 in Bali and today we are here to sign a $649 million compact, one of the largest grants in MCC’s history, bringing MCC’s total investment in Indonesia to nearly $1.2 billion. As the President noted in November, this compact will “build climate-resilient transportation and support Indonesia’s development goals” while contributing to PGII objectives.
We know Indonesia has a $70 billion infrastructure gap. And we understand private sector investment is limited, and that local municipalities need support to bring transactions to close. Driven by local needs, MCC and the Government of Indonesia agreed on a geographical focus in five priority provinces to: improve the financing of infrastructure, particularly in transport and logistics, and increase access to finance for women-owned small businesses. Ultimately, these efforts could benefit Indonesians nationwide, beyond the 23 million who live in these provinces today. And that is what this compact is all about – delivering real results and unlocking greater opportunities for the Indonesian people. Ibu Hamida, for example, told my team that with the right financing, she can purchase machinery that will take her packaged goods business to the next level.
The United States and Indonesia share a deep and enduring partnership, anchored in our common democratic values, and I am excited we are building on this strong foundation today. Minister Mulyani, thank you again to you and your team. In many ways, the hard work begins now, and I am looking forward to partnering with you to advance prosperity for millions of Indonesians for years to come.
Thank you.