ICD ALLOCATES $50 MILLION FOR SMEs DEVELOPMENT IN RI

Jakarta, Mar 3 (ANTARA) - The Islamic Corporation for Development of the Private Sector (ICD) has allocated US$50 million in funds for the development of small-and medium-scale enterprises (SMEs) in Indonesia.
The funds were part of the global funds of ICD for the private sector in various countries, ICD's CEO and general manager, Khaleed Al-Aboodi, said after signing an agreement on financing the SME Program with Mandala Finance on the sidelines of the World Islamic Economic Forum (WIEF) here on Tuesday.
The purpose of the cooperation between ICD, an arm of the Jeddah-based Islamic Development Bank (IDB), and several other countries, was to introduce the Islamic financial system to ICD member countries, including Indonesia, he said.
"Indonesia is one of the important markets, where the government supports and continues to strengthen the infrastructure of Islamic economic principles," he said.
Islamic economic principles had received a positive response from the private sector amid the current financial economic crisis, including from private business circles in non-Muslim countries, such as Russia, France and the United States, according to Al-Aboodi.
However, in Indonesia, he said, the percentage of Islamic banks' assets was still relatively small compared to those in Malaysia and Middle Eastern countries.
ICD was also conducting a financial study on programs to be offered to selected companies in Indonesia with projects worth a total of US$82 million, he said.
The ICD was also exploring cooperation with state-owned Bank BNI to set up a sharia-based bank in Indonesia with a capital outlay of US$500 million.
Al-Aboodi, accompanied by IDB (Islamic Development Bank) Group President Ahmad Mohammed Ali, on the occasion signed an agreement on a project worth US$8 million with Mandala Finance for SME program and a capital asset hike.
He hoped that the cooperation between ICD and private companies in Indonesia would help stimulate investment in the country.
The WIEF taking place in Jakarta from March 2 to 3, 2009, is being attended by around 1,500 participants from 135 countries.