REPUBLIKA.CO.ID, JAKARTA - Indonesia agrees to cooperate with the Islamic Development Bank (IDB) to develop public and private sectors. Since it was built in 1975, IDB has helped Islamic countries with low portfolio to eradicate poverty. 

"The cooperation is expected to add values and competitiveness in the development of public and private sectors," Minister of Finance, Agus Martowardojo, said on Thursday. Until 2013, Indonesian loan reaches two-third percent of IDB aid for education and public administration sectors, followed by agricultural and health sectors.

IDB has several organizations on financing sector which is in line with the principle of Islamic banking. Its organizations - Islamic Corporation for Development of Private Sector (ICD), Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and International Islamic Trade Finance Institute (ITFC) - will finance private sectors, while IDB itself will finance state budget.

Meanwhile, its another entity, Islamic Research and Training Institute (IRTI), will finance research and education, including economic and Islamic finance trainings.

IDB investment until February 2013 is 33 billion USD or equivalent to 30 trillion IDR, with 54 percent for public sector, 41 percent for international trade and five percent for private sector.

Indonesia supports the forming of Country Gateway Office (GOC) to unite the functions of IDB entities. The President of IDB Group, Ahmed Mohamed Ali Al-Madani, said GOC was a reformation of management. GOC is expected to widen the opportunity of business in other sectors such as transportation and energy.

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