The World Bank said it will stop offering soft loans to Indonesia as the country has been promoted to the category of middle income nation starting June, Asia Pulse reported Wednesday.
Country director Joachim von Amsberg said the donor agency will no longer accept IDA requests from Indonesia, which already has a per capita income far exceeding $1,000 per year.
Indonesia's gross domestic product (GDP) per capita was $1,420 in 2006 compared to China's $2,000, Malaysia's $5,620, Thailand's $3,050, the Philippines' $1,390 and Vietnam's $700, Amsberg said.
Meanwhile, the Asia Development Bank is considering doing the same by the end of 2008.
Principal country specialist of ADB for Indonesia Purnima Rajapakse said the ADB board of directors is looking into the possibility of stopping the soft loans for Indonesia starting January next year.