Jakarta, May, 2011: The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IDB) Group, signed a memorandum of understanding with Bank Muamalat Malaysia Berhad and two $1 million Murabaha financing agreements with Indonesian coffee exporting companies, CV Arvis Sanada and CV Ujang Jaya.
The signing took place during the “IDB Day” in Indonesia which was held by the Government of the Republic of Indonesia and the Islamic Development Bank in Ritz Carlton Hotel in Jakarta.(source)
The financing for the coffee sector is a pivotal as coffee is considered a major commercial export commodity of the Republic of Indonesia. With 6.6% share in the world coffee market, Indonesia is the third largest producer and fourth largest exporter.
Commenting on the signings, Dr. Waleed Al-Wohaib, CEO of ITFC, said “90% of the coffee grown in Indonesia comes from small, independent farms, and more than 11 million people depend on it for their livelihood”. He went on to add “By supporting such vital sector, ITFC fulfills its roadmap developmental objectives of addressing agriculture and rural development needs in the Republic of Indonesia”
The financing is aimed at directly impacting the lives of six thousand farmers in the Aceh region. The Cooperative and Farmers who are the suppliers of the coffee beans will be able to get ready cash for the coffee beans and this will improve the livelihood of the farmers and their families.
It is worth mentioning that in 2009, ITFC gained a global recognition from Islamic Finance News (IFN), Global Trade Review Magazine and Euromoney who all chose the $25 million sugar deal in Indonesia as the “Best Deal of the Year”.
Source : http://www.itfc-idb.org/content/itfc-supports-indonesian-coffee-exporting-sector - May 31, 2011
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