The International Finance Corporation or IFC, a member of the World Bank Group, has committed to invest up to $300 million in companies engaged in tourism-related sectors in Indonesia, a top executive told DEALSTREETASIA on Wednesday.
The commitment figure is set for the fiscal year July 2019-June 2020.
“We target to have $300 million for our pipeline, which we want to invest in the companies. We cannot disclose the name of the companies yet, but they mostly operate to develop a tourism business in Indonesia,” IFC’s country manager for Indonesia, Malaysia, and Timor, Leste Azzam Khan, said.
IFC also approved a $10-million loan package for Singapore-headquartered boutique river cruise company Aqua Expeditions for its Indonesia expansion.
Founded in 2007, Aqua Expeditions operates soft-adventure cruises in emerging market destinations. It currently operates two boats – cruising across Cambodian Mekong and Peruvian Amazon rivers.
The company will use the debt package to add another boat, offering coastal luxury cruise service in the eastern part of Indonesia, such as in Ambon (Maluku), Raja Ampat (Papua), Maumere (Flores), Komodo Island and Labuan Bajo (East Nusa Tenggara) or the so-called ‘ten new Balis.’
The Indonesian government has been actively promoting the ‘ten new Balis’ tourism programme to develop several destinations beyond the most popular tourist Island of Bali. Indonesian tourism could also potentially generate $20 billion in foreign exchange revenue throughout this year, according to the government estimates.
Last year, the tourism sector contributed $16.1 billion in foreign exchange revenue.