Indonesia still ADB's largest borrower<\/p>\n
JAKARTA (JP): Indonesia remains the largest borrower of the
\nAsian Development Bank (ADB), with cumulative loans of US$13
\nbillion, the Manila-based bank's representative in Indonesia,
\nT.C. Patterson said yesterday.<\/p>\n
Patterson said the ADB's lending to Indonesia has increased
\nsteadily from an annual average of about $100 million in the
\n1970s to $500 million per year in the 1980s.<\/p>\n
"The bank's lending to Indonesia increased further to more
\nthan $1 billion annually in the current decade. To date,
\ncumulative ADB lending to Indonesia has reached about $13
\nbillion," he told a seminar coorganized by the Ministry of
\nForestry and the Embassy of Finland.<\/p>\n
Patterson said the agriculture sector, which includes
\nforestry-related projects, is the largest sector to receive loans
\nfrom the ADB, with a 27 percent share. Second largest is the
\nsocial infrastructure sector, including urban development,
\neducation and health, with a 23 percent share.<\/p>\n
The bank's lending to the energy sector is around 18 percent
\nof its total loans to Indonesia, while its lending to transport
\nand communications is 18 percent, he said.<\/p>\n
The financial sector received about 8 percent of the bank's
\ntotal loans. Paterson said the sector received $116 million in
\ndirect financial assistance, including $19 million for equity
\nfacilities, $6 million for underwriting and $91 million for terms
\nloans.<\/p>\n
Speaking at the seminar which marked the visit of Finnish
\nMinister of Agriculture and Forestry Kalevi Hernila, Patterson
\nsaid the bank also provided two-step loans to the Indonesian
\nprivate sector through local commercial banks.<\/p>\n
"These loans, amounting to about $715 million, have been
\nprovided for a large number of medium and small-scale businesses
\nin agriculture, fisheries and manufacturing industries," he said.<\/p>\n
The strategic objectives of ADB's future operations are to
\nsupport economic growth, human resource development and
\nsustainable utilization of natural resources in line with
\nIndonesia's sixth five-year development plan, Paterson said.<\/p>\n
"The bank's important wide concerns of poverty reduction and
\nimproving the status of women are regarded as integral part of
\nthe pursuit of these three objectives," he said.<\/p>\n
To support Indonesia's increasingly efficient growth, ADB's
\noperation programs will emphasize attempts to raise international
\ncompetitiveness, he said. (hen)<\/p>",
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