FASILITAS DAN PROSEDUR PEMBIAYAAN OLEH
ISLAMIC DEVELOPMENT BANK (IDB)
Badan Kebijakan Fiskal
Selasa, 1 Juni 2010
Nanang Zainal Arifin
Pusat Kebijakan Kerja Sama Internasional
I. IDB Highlight
Headquarter and Regional Offices
IDB Vision and Mission 1440H (2020)
II. Facilities (Products and Services)
Modes of Financing
IV. IDB’s Operation in Indonesia
IV. Future Action
Ministry of Finance is IDB Governor Office and
BKF is the Secretariat of IDB Office.
Government expects IDB to increase financing
for private sector.
IDB facilities can be utilized optimally.
Islamic Finance Industry will evolve in the
• Head Office and Regional Offices
• Accounting Unit
Islamic Development Bank (IDB)
• Established in 1975 to foster socio-economic development
in member countries and Muslim communities in
compliance with Shari’ah.
• Authorized capital of US$ 45 billion
• Subscribed capital of US$ 22 billion
•Paid-up capital of US$ 5.3 billion
rating by Moody’s Investors Service, Fitch Ratings,
Standard & Poors.
• Zero-Risk Rating by the European Parliament
Latin America: 1
• A Unique Model of South-South Cooperation
• 56 members spreading over 4 continents
• 22 countries in 1975 → 56 countries in 2009
IDB Regional Offices
Dakar, Sene Almaty
In addition, there are currently 12 Field
Representatives in some countries
“ By the Year 1440H (2020) IDB shall
have become a world-class
development bank, inspired by
Islamic principles, that has helped
significantly transform the landscape
of comprehensive human
development in the Muslim world
and helped restore its dignity.”
“We are committed to alleviating poverty,
promoting human development, science &
technology, and Islamic banking & finance,
and enhancing cooperation among our
member countries, in collaboration with
IDB Organizational Structure
Group BOARD OF
BOARD OF EXECUTIVE Operations
General DIRECTORS Evaluation
Group Group Risk
World Waqf Strategic
VP VP Chief
(Fin.) (Opr.) Econ.
IDB: Six Priority Areas
Agriculture Development and Food Security
Intra-trade Among Member Countries
Private Sector Development
Research and Development in Islamic
Economics, Banking and Finance
Corporation for Islamic Research
Insurance of & Training
for the Islamic Trade
of the Private Corporation
Islamic Research & Training Institute
• Research Seminars & Conferences
• Training Courses
• IDB Prize in Islamic Economics, Banking &
• IRTI Scholarship for PhD in Islamic Banking
Islamic Corporation for Insurance of
Investment & Export Credit (ICIEC)
• Established in 1994 to provide Shari’ah-compatible
export credit insurance, political risk
insurance, technical assistance.
o Capital Structure (66.7% IDB, 33.3% MCs) : Total
authorized capital US$ 231 million, subscribed
capital US$ 228 million
o Business Insured in 2009 : over US$ 1 billion
o Cumulatively, as of December 2009 :
- Business Insured US$ 6.35 billion
- in more than 37 member countries
• Insurance Financial Strength Rating of Aa3 by
Moody’s Investors Service
Islamic Corporation for the Development
of the Private Sector (ICD)
o Established in 1999 & commenced its operation in July 2000
o Mandated to promote private sector development and to offer
advisory services to the private sector entities in member
o An authorized capital of US$ 2 billion, paid up capital of US$
o 47 Islamic Countries are members of which 21 are in Africa.
o Capital Structure (50% IDB, 30% MCs, 20% Financial
o As of December 2009, cumulative business :
- Approvals : 185 Projects amounting to US$ 1.59 billion
- in more than 32 member countries
International Islamic Trade Financing
• Commenced business activities in January 2008.
It promotes and enhances intra-trade and trade
cooperation among 57 member countries of the
Organization of Islamic Conference (OIC) through
trade financing and promotion programs;
• Authorized Capital : US$ 3.0 billion
• Subscribed Capital : US$ 750 million
• Managing Funds for other institutions : US$ 1.0 billion
• Year 2009 Trade Finance Approvals : US$ 2.1 billion
• Cumulatively Trade Financing, end 2009 : US$ 4.6 billion
The Islamic Development Bank Group:
Current Areas of Intervention
Financing of Developing the Trade Financing Capacity Building
Projects (Public Islamic Financial and Promotion
and Private) Industry of Cooperation
Agriculture Equity Financing Disseminating of
Infrastructure participation in imports skills (exchange of
Islamic financial Financing experts, training, etc.)
institutions exports Supporting civil
Developing Promoting societies through
Regulatory trade NGOs
SMEs, micro framework cooperation Supporting women-
financing Research and in-development
Other sectors training initiatives
IDB/ICD IDB/ICD ITFC IDB/IRTI
The Islamic Development Bank Group:
Current Areas of Intervention (Cont’d)
Risk Research and Asset Special Assistance
Insurance Training Management and Scholarships
Country risk Islamic Awqaf assets Support to Muslim
Short- and banking and Investment minorities in non-MCs
medium-term finance portfolios Alleviation of natural
commercial Islamic Equity funds disasters
risks economics Venture capital Scholarships for
Coverage of Training in funds Muslim communities
banks for Islamic related fields in non-MCs.
financing Merit Scholarship
ICIEC IRTI IDB/ICD IDB 22
Construction Finance (Istisna’a)
Line of Financing
Technical Assistance (Loan & Grant)
Murabaha (Trade Financing)
• Medium/long term rental financing arrangements for income
generating projects in industry.
• Capital equipment and other fixed assets: machinery, agro-
industrial, transport, etc.
• Public and private sectors.
• Technically sound and have a life span beyond the lease period.
• Lease period up to 15 years, including gestation period up to 4 years.
• Mark up 6% per annum and rebate 15% per annum.
• Minimum limit is ID 2 million and maximum is 80 per project.
• Transfer of ownership of the equipment after the end of the lease
Medium-term mode of financing.
IDB buys tangible assets on behalf of the beneficiary and sells it at a
mark up allowing the beneficiary to make the payment.
Transfers the ownership upon delivery to the beneficiary.
Private sector must contribute 20-30% of the total project cost.
Minimum limit of financing is ID 2.0 million and the upper limit is
about ID 80 million per project.
Eligible goods is equipment needed for development in various
economic sectors: infrastructure, industry, agriculture, education,
Maximum period is 15 years including the gestation period.
Mark-up is fixed at 6% per annum and a 15% rebate on the mark-
Provide bank guarantee acceptable to IDB.
Istisna’a is a contract whereby a party undertakes to produce a
specific thing according to certain agreed-upon specifications at a
determined price and a specified date of delivery.
The work can be done by others (not undertaking party) under his
control and responsibility.
The objective is to promote manufacturing and construction
capabilities in the IDB member countries.
It provides medium/long-term financing to meet financing
requirement for manufacturing/supplying of assets such as
machinery, cargo vessel, oil tankers, etc.
The financing of capital goods shall not exceed 15 years including
a gestation perios.
The mark-up shall be fix 6% per annum on the Islamic Dinar. The
mark-up is subject to change by the Bank from time to time.
The beneficiary (buyer) shall provide a guarantee to IDB from the
Government or a first class bank.
Long-term financing for development projects.
Priority sector is agriculture and infrastructure.
Maximum loan is ID 15 million per project.
Repayment period 15 to 25 years, with a grace period of 3 to 7
The beneficiary is to contribute in the project financing (co-
Usually for government or public institutions and having
government guarantees. Private sector may also benefit from loans
in special case.
Disbursements are based upon actual project execution.
TA is the provision of technical expertise to assist in the
preparation or implementation of a project or a policy.
It can also help in the development of institutions or
2 types of TA: directly related to a project (feasibility
study, detailed design, etc), and an advisory nature
(definition of policies, preparation of sectoral plans,
institution-building, research, etc).
TA as part of a project is financed through the project
itself, while independent TA is financed by a grant or
For public sector is limited to maximum of ID 300,000,
and for private sector is ID 100,000.
IDB participates in the equity capital of
companies/enterprises that are potentially profitable,
Shariah compatible, and are projected to have a
developmental impact on the economies of member
Goal is to strengthen the capital base and to augment
investors’ confidence in the company.
It can be used to finance all types of campanies both in
public and private sectors.
Maximum participation is one-third of the equity
IDB will nominate one or more directors to the
governing body of a company.
Technical departments submit a project
financing proposal to Bappenas.
Bappenas will list the proposed project to the
Bappenas will facilitate to find donors/lenders
for the project.
IDB will send an appraisal team to study the
IDB and the technical departments will sign the
Any request for financing should be channeled
through the Governor of the concerned member
country to IDB.
The official request must be accompanied by a
feasibility study of the project (proposal).
The Private sector must contribute 20-30% of the total
The private sector must provide a guarantee from a
first class commercial bank acceptable to IDB.
The IDB Governor will issue no objection letter (NOL)
on the proposed project.
An request letter from project owner.
A letter of support from expert commision.
The completeness of documents:
Cash flow plan
The financial statements of the last three years, etc.
• Indonesia is Founding Member of IDB (1974)
• Member of ICIEC (1993)
• Member of ICD (2003)
• Member of ITFC (2007)
Entity Membership Subscription %
IDB 1974 ID 406.48 2.54%
ICIEC 1993 ID 0.25 0.17%
ICD 2003 US$ 4.75 1.11%
ITFC 2007 US$ 2.06 0.31%
ISFD US$ 0.00 US$ 0.00
IDB: 86 Ops for ID 753.5 mn (US$1.1 bn)
Completed57 Ops = ID381.4 mn (45%)
Active 27 Ops = ID345.4 mn (40%) of which
17 Ops = ID226.7 mn disbursing (66%)
10 Ops = ID 188.8 mn non-disbursing (34%)
SAO: 2 Ops ID 2.1mn = (US$2.1 mn)
ICD : US$ 23.8 mn
ITFC : US$ 785.2 mn
ICIEC : US$ 68.7 mn (Business Insured)
Country Development IDB Proposed Strategy
Strategy (RPJMN 2010-14) Education
Increase Per capita Income Urban Development
Reduce Poverty & Population Growth
Increase Health & Nutrition INFRASTRUCTURE
Improve Human Capital and Transport
Balanced Growth:Accelerate growth
outside Java (Regional Balance) Agriculture
(1) Poverty Reduction (2) Islamic Finance (3) Capacity Building
1430H Work Program
Operations approved during 1430
Operations Mode US$
1. Belawan Commercial Port Istisnaa 87.000
2. PNPM-Integrated Community Driven Istisnaa 68.000
3. PNPM-Integrated Community Driven Loan 15.000
4. Medical Research Centers and Two IS/Lsg 70.000
5. Enhancement Carbon Sequestration TA Gr 0.200
From Indonesian Rain Forest
6. West Sumatra Emergency Relief Grant 1.000
7. West Sumatra Relief & Rehabilitation Loan/Istisnaa 29.500
Grand Total 280.200
Category A: Ready projects
Project Type Sector Amount
Quality Improvement of HDE - 35.00
Padjadjran University Education
Semulue Physical Agriculture & 20.0
Infrastructure (TP-Phase Rural
Category B: Standby projects
Development & upgrading of State HD -Education 35.00
University (UNESS), Semarang
Procurement of Rail Track, Java INF - Transport 70.00
Regional Roads Development INF-Transport 120.00
(co financing with ADB)
RR of Vocational Training Centers HD - Vocational 36.00
Integrated Community Driven Rural 77.60
Development (ICDD) Development
Total (A+B) 393.6
IDB PORTFOLIO IN INDONESIA (per December 31, 2009)
1 IDB Total Projects 79 Loans
2 Total Amount USD 1.767,3 Million
3 Cancellation 10 loans
4 Total Amount of Cancellation USD 312,6 Million
5 Net Commitment 69 loans
6 Total Net Commitment USD 1.454,8 Million
7 Total Disbursed USD 1.119,9 Million
8 Undisbursed USD 364,6 Million
9 Principal Paid USD 805 Million
10 Outstanding USD 314,9 Million
*) Based on 4th Quarterly Report Year 2009, Directorate of Evaluation, Accounting and Settlement
Total Operations Plan in 2010: US$ 3.72
- US$ 39 million Grants Financing
- US$ 381 million Concessional Loans
- US$ 3.30 billion Ordinary Financing
Investments in Islamic Banks & Financial Institutions
Capacity Building for Islamic Banks
Introduction and Dissemination of Islamic Modes of
Financing, and Developing Knowledge
Developing the architectural foundation of the Islamic
financial Industry, by establishing and supporting crucial
List of cost TERMS AND CONDITIONS
IBRD IFAD IDB ADB -ADF ADB - OCR JICA (ODA)
Maturity 15-24,5 40 years 15-20 years 32 years 15-25 years 30-40 years
Grace Period 3-9 years 10 years 3-5 years 8 years 3-5 years 10 years
Repayment Period 15 years 30 years 12-15 years 24 years 12-20 years 20-40 years
Commitment Charges - - - - 0,15% -
Front-end-fee 0,25% - - - - -
Service Charges - 2,5 - 5,1% - - -
Interest Rates LIBOR + 0,75-3% - 1% during LIBOR+0,60% -
1.20%(FSL) Grace Period, Waiver 0,40%