IDB sets aside $443m for RI tsunami assistance package<\/p>\n
Leony Aurora, The Jakarta Post\/Jakarta<\/p>\n
The Islamic Development Bank (IDB) will extend a US$443 million
\ntsunami assistance package to Indonesia, pending the completion
\nof the government's final assessment of its post-tragedy
\nfinancing needs, a bank executive says.<\/p>\n
IDB vice president Amadou Boubacar Cisse told The Jakarta Post
\non Friday the package, comprising an emergency relief grant, soft
\nloans, ordinary loans and import credits, had already been
\napproved.<\/p>\n
\"We are ready (to disburse the funds),\" he said. \"The
\ngovernment is in the driver's seat now. We'll follow their
\nstrategy and action plan.\"<\/p>\n
Cisse said the bank recognized the necessity of simplifying
\nprocedures to ensure these resources could be given \"as early as
\npossible\".<\/p>\n
A group of experts from the National Development Planning
\nAgency will depart this weekend for Aceh and North Sumatra to
\nassess the damage caused by the recent earthquake and tsunami.<\/p>\n
The IDB previously announced it had prepared a package of $500
\nmillion for all of the disaster-affected countries.<\/p>\n
Aceh has been the worst affected area by the catastrophe, with
\nmore than 100,000 dead and much of its infrastructure destroyed.<\/p>\n
Indonesia will receive $3 million in grants from the IDB for
\nimmediate humanitarian relief.<\/p>\n
\"This money has already begun to be disbursed,\" said Cisse.<\/p>\n
The bank, which operates under the Islamic sharia system that
\nprohibits interest being charged for financial transactions, also
\nis offering $50 million in soft loans and $160 million in
\nordinary loans.<\/p>\n
The soft loans come with a service fee equivalent to an annual
\ninterest rate of under 1 percent, while the ordinary loans carry
\na repayment fee equivalent to interest of about 3 percent per
\nyear. Both types of loans, which would be used to fund
\nreconstruction projects, will have to be repaid in between 25
\nyears and 30 years.<\/p>\n
Cisse said it was too early to determine when the project
\nfunds would be delivered. \"We assume that for the reconstruction,
\n(the disbursement) may take one or two years,\" he said.<\/p>\n
The IDB also will provide $230 million in import credits that
\ncan be used to enable the importing of essential products for
\nAceh's reconstruction.<\/p>\n
Aside from the Aceh relief funds, the bank will maintain its
\ncurrent programs in Indonesia under a three-year cooperation
\nending in 2006.<\/p>\n
The IDB reported last year that the government and the private
\nsector of Indonesia absorbed less than 30 percent of $500 million
\nloans extended by the bank, due to problems related to regional
\nautonomy.<\/p>\n
The IDB, which was established in 1973 by the member countries
\nof the Organization of the Islamic Conference, funded last year
\ntrading activities conducted by state oil and gas company PT
\nPertamina, steel mill PT Krakatau Steel and chemical manufacturer
\nPT Petrokimia.<\/p>\n
The bank also made a preliminary commitment to provide working
\ncapital of between $15 million and $60 million to aircraft
\nmanufacturer PT Dirgantara Indonesia.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/idb-sets-aside-443m-for-ri-tsunami-assistance-package-1447893297",
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