OPIC Signs New Investment Agreement with Indonesia
April 14, 2010
WASHINGTON, D.C. – The ability of American companies to invest in Indonesia – the world’s fourth most-populous country – through the support of the Overseas Private Investment Corporation (OPIC) was improved by the conclusion of an agreement between the two countries.
OPIC Acting President Dr. Lawrence Spinelli and Gita Wirjawan, Chairman of Indonesian Investment Coordinating Board, signed the investment support agreement at a ceremony in Washington, D.C. attended by Indonesian Vice President Boediono.
The new agreement updates a 1967 pact between the United States and Indonesia by adding OPIC products such as direct loans, coinsurance and reinsurance to the means of OPIC support which U.S. companies may use to invest in Indonesia.
Noting the importance of developing a “mutually-advantageous economic relationship” between the two countries, the agreement affirms “a common desire to encourage economic activities in the Republic of Indonesia that promote the development of the economic resources” of Indonesia.
“Indonesia offers a large and dynamic market for U.S. investment, which in turn will support Indonesia’s economic growth – a prospect that is only improved by the conclusion of today’s agreement,” said Dr. Spinelli. “We look forward to working closely with both U.S. and Indonesian companies to facilitate new levels of investment in Indonesia.”
Dr. Spinelli noted that over its 39-year history OPIC had committed more than $2.1 billion in financing and political risk insurance to 110 projects in Indonesia. Currently, OPIC is providing more than $94 million in support to six projects in Indonesia, in the energy, manufacturing and services sectors.