Finance Minister Bambang Brodjonegoro (L) and IDB President Ahmad Mohamed Ali

Jakarta (IINA) – Indonesia is to cooperate with the Islamic Development Bank (IDB) Group in financing several infrastructure programs, one of which concerns the improvement of slum areas, Jakarta Post (JP) reported.

The two sides will sign a member country partnership strategy (MCPS) 2016-2020, covering slum area improvement worth $365 million, electricity transmission worth $350 million and the improvement of four universities and Islamic higher education facilities worth $176.5 million.

“The IDB Group will support Indonesian infrastructure development. The MCPS 2016-2020 will focus on social and physical infrastructure,” Finance Minister Bambang Brodjonegoro said on the sidelines of the IDB Group annual meeting at the Jakarta Convention Center on Monday.

IDB Group President Ahmad Mohamed Ali stated that the bank was committed to supporting the government in dealing with challenges in infrastructure, poverty alleviation and capacity building.

“IDB and the Indonesian government have also cooperated to enhance Indonesia’s financial system,” Ali said, adding that Indonesia contributed to the IDB’s technical cooperation mechanism through its Reverse Linkage Program.

He further said the IDB provided technical assistance to support Islamic finance, both in member and non-member countries.

“In 2015, IDB launched 36 technical assistance programs in seven member countries and 29 non-member countries. Ten of the programs aim to provide emergency assistance to seven member countries and three non-member countries worth $6 million,” he said.

IDB Chief Economist Savas Alpay said that the bank has been providing loans and grants to speed up socioeconomic development in member countries.

According to its 2015 Annual Report, the IDB approved $12.1 billion net loans and grants, up by 13 percent year-on-year.