ADB links Indonesia aid to reform, better governance<\/p>\n
MANILA (Agencies): The Asian Development Bank (ADB) said on
\nSaturday it was prepared to lend Indonesia between US$600 million
\nand $1.2 billion a year over the next three years, provided the
\ngovernment pressed ahead with key reforms.<\/p>\n
Indonesia must boost its efforts to reduce poverty, strengthen
\ngovernance and improve macroeconomic stability, the Manila-based
\nmultilateral institution said, if the country is to qualify for
\nassistance at the top end of the lending range.<\/p>\n
Other conditions to qualify Indonesia for assistance at the
\nhigher end of the lending range are resolving problems in
\ndecentralization, including giving more authority to local
\ngovernments and improving the implementation of ADB projects.<\/p>\n
The conditions are part of the new \"country operational
\nstrategy\" for Indonesia approved by the ADB earlier last week.<\/p>\n
The bank did not give details on the specific criteria it was
\nsetting for Indonesia nor did it say to what extent it would cut
\nloans if they were not met.<\/p>\n
Indonesian Coordinating Minister for the Economy Rizal Ramli
\nsaid earlier on Friday his country welcomed the new strategy and
\ncalled for the ADB to provide a higher level of its concessionary
\nresource, the ADB Special Fund, for programs focusing on poverty
\nreduction and balanced growth.<\/p>\n
\"The ADB would be flexible and responsive to the country's
\nchanging political and economic conditions over the next three
\nyears and continue to support policy reforms,\" ADB's director for
\nIndonesia mission Jan van Heeswijk said in a statement.<\/p>\n
\"However, without improved governance, ADB's programs will not
\nhave a sustainable impact on poverty.\"<\/p>\n
Indonesia would also need to do more to improve the
\nimplementation of ADB projects to make more efficient use of
\nlending resources, the statement said.<\/p>\n
The ADB said the loan package was part of its new country
\nstrategy for Indonesia, which focuses on the need for policy
\nreforms.<\/p>\n
Indonesia borrowed about $1.2 billion annually before a
\ndevastating economic crisis hit Asia in 1997. During the crisis,
\nlending commitments increased substantially to $1.8 billion in
\n1998 and $1.5 billion in 1999, the bank said.<\/p>\n
Jakarta has borrowed nearly $17.7 billion to finance key
\ndevelopment projects, it added.<\/p>\n
The ADB also said it plans to sign a poverty-reduction
\npartnership agreement with Indonesia to improve the bank's new
\ncountry strategy.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/adb-links-indonesia-aid-to-reform-better-governance-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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