FinSoul: 1Billion Dollar green investment fund in the pipeline for Indonesia.

Jan. 26, 2010 - PRLog -- FinSoul has learned of recently re-elected Indonesian president Susilo Bambang Yudhoyono’s planned Indonesian Green Investment Fund which he intends to use to drive infrastructure development that will speed economic growth, boost food and clean water production and also cut greenhouse gas emissions that are responsible for global warming.

After pledging his nation to cut emissions by 26% from business as usual levels by 2020 at last months Copenhagen climate summit, the president has also pledged to boost economic growth to 7% or more by 2014.

The island nation’s sovereign wealth fund will put up $100 million for the fund with a further $900 million coming from foreign governments including Norway and Australia, as well as some institutional investors, according to Ministry of Finance sources.

"We're in the initial stages but the target is to have this fund operational within this year,"  FinSoul believes a senior adviser to the Ministry of Finance was quoted as saying, adding that the new fund aimed to rival Brazil's Amazon Fund in size and scope. "There's no reason why this can't, in the next five years, scale to $5 billion or more."


The green fund will not offer loans or grants but will make top-up funding available for projects where a bank lender is looking for an additional equity injection.

"Many technology providers and project sponsors don't have the balance sheet to top up the required equity needed to secure financing. We would come in and play a catalyst role to ensure good projects with good asset quality, with good expertise and proper management, can be deployed and proceed." Finsoul understands the spokesman said.

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FinSoul structures and guides greenhouse gas emission reduction projects from beginning to end, working with both project developers and buyers of emission reduction credits.