Indonesia Compact II - Financial Markets Development

MCC’s $649 million Indonesia Compact (2024-2029) includes the $95.9 million Financial Market Development (FMD) Project, which aims to reach financial close on transactions using structured finance, including deals with institutional investors and with a focus on local currency transactions, responding to the root causes of underdeveloped project financing market and capital markets. The Project will work with lenders and the private sector to leverage grant financing and form new partnerships that unlock existing money to fund lower-risk, high quality infrastructure projects. These investments in capacity building, advisory services and blended finance delivery mechanisms are intended to increase the participation of private or commercially-oriented infrastructure investments, especially by Indonesian lenders, making markets more competitive and accelerating economic growth.