Indonesian CSOs demand World Bank stop funding infrastructure funds

7 April 2017

In early March 47 international civil society organisations, including the Institute for Policy Research and Advocacy (ELSAM), the Indonesian Legal Resource Centre (ILRC), Walhi and ‘Ulu Foundation, sent a letter to World Bank president Jim Yong Kim. the International Finance Corporation (IFC, the World Bank’s private sector arm) CEO Philippe Le Houérou and Asian Infrastructure Investment Bank (AIIB) president Jin Liqun asking that the AIIB’s and Bank’s boards withhold funding for the new Indonesian Regional Infrastructure Development Fund (RIDF) and PT Indonesia Infrastructure Finance (IFF). The letter outlined numerous substantive concerns of violations and lack of compliance with the World Bank and AIIB environmental and social safeguards during the development of RIDF, including inadequate consultation with affected communities and protection of indigenous peoples. Despite the concerns raised by civil society, the World Bank board approved $100 million (20 per cent of the initially approved loan) for RIDF and $200 million in support for IFF in March.