April 30, 2012, Makati City, Philippines – The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the Indonesia Infrastructure Guarantee Fund (IIGF) signed a Memorandum of Understanding (MOU) during the 2012 Asia Finance and Risk Mitigation Forum in Makati City, Philippines on 30 April 2012. Dr. Abdel Rahman El-Tayeb Taha, the Chief Executive Officer of ICIEC and Ms. Sinthya Roesly, Chief Executive Officer of IIGF signed the MOU. The MOU aims at establishing— consistent with their respective operational policies— a lasting relationship between the two entities in furtherance of their desire to co-ordinate their activities and seek mutual cooperation in promoting infrastructure investments into Indonesia.
Commenting on the importance of this agreement, Dr. Taha said, “the signing of the MOU comes within the framework of ICIEC’s mandate to support the development of its member countries by providing export credit and political risk insurance to investment projects”. He added “the two institutions will jointly work towards increasing awareness about the importance of political risk insurance for foreign investors and financiers of projects. I am confident that singing this MOU with IIGF will greatly enhance both parties’ ability to support foreign direct investments into Indonesia”
It is worth mentioning that since its inception in 1995, ICIEC has provided insurance commitments in excess of USD 11 billion. Over 17 years in business, ICIEC has carefully nurtured professional relationship with leading exporters, ECAs, reinsurers and banks. ICIEC is now a name, which is trusted by its partners worldwide. ICIEC’s shareholders include 40 countries from the Organization of Islamic Cooperation (OIC). Its main shareholder, the Islamic Development Bank (IDB), owns 67% of the capital and is rated AAA by the three global rating agencies (S&P, Moody’s & Fitch). ICIEC is rated by Moody’s as Aa3 with a stable outlook on a stand-alone basis.
IIGF, on the other hand, is a fully government-owned institution established by the Government of Indonesia (GoI) as a fiscal tool mandated to provide guarantees to mitigate the private sector exposure to government-related contractual risks in infrastructure Public Private Partnership (PPP) projects. The GoI has set up the IIGF to address the need for fiscal support to accelerate Indonesia’s infrastructure development, particularly under PPP scheme.