Japan, ADB commit $470m for infrastructure<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Japanese government and the Asian Development Bank (ADB) have
\nseparately committed additional loans totaling US$470 million to
\nhelp Indonesia improve its infrastructure.<\/p>\n
Japan's Ambassador to Indonesia Yutaka Iimura said on Thursday
\nJapan would provide $420 million in total loans next year to help
\nIndonesia finance its infrastructure development plan, which is
\nexpected to require between $10 and $15 billion in funds.<\/p>\n
The loans are expected to be formally agreed upon and
\ndisbursed within the next six months, Iimura said, and will be
\nused to speed up the completion of 50 major infrastructure
\nprojects in the power generation, road and railway sectors, which
\nare seen as essential to boost Indonesia's economic growth.<\/p>\n
\"We hope improving the infrastructure facilities will help
\nstimulate Indonesia's economic growth,\" the ambassador said.<\/p>\n
Bilaterally and through the Consultative Group on Indonesia,
\nJapan provides an average of $1 billion in development loans each
\nyear to Indonesia. It recently raised the interest rate on its
\nloans to 1.5 percent from 1.3 percent, effective next year,
\nalthough it will maintain the 10-year grace period and 30-year
\nmaturity term for the loans.<\/p>\n
Meanwhile, the ADB has approved $50 million in loans to
\nsupport Indonesia's rural infrastructure development program in
\nsome 1,800 selected poor and isolated villages in East Java, East
\nNusa Tenggara, South Sulawesi and Southeast Sulawesi.<\/p>\n
The loans, the Manila-based bank said in a statement released
\non Thursday, will finance the construction and repair of village
\nroads, bridges, irrigation systems, drainage works, sanitation
\nsystems and water supplies, with the help of community
\norganizations.<\/p>\n
\"The project's community-driven approach will help develop a
\nsense of ownership among communities, which will reflect not only
\nin the quality of the work carried out but also the long-term
\nsustainability through upkeep and maintenance,\" the project's
\neconomist, Muhammad Ehsan Khan, said.<\/p>\n
The total cost of the project is estimated at $60.82 million,
\nof which the Indonesian government will pay $5.96 million and the
\nbeneficiaries $4.85 million.<\/p>\n
The government will borrow the money and disburse the funds to
\nthe selected villages on a grant basis, with each participating
\nvillage eligible for a grant of up to $25,000. Larger or more
\ndeveloped villages may be considered for further grants based on
\nthe use of their first grants.<\/p>\n
The loan will come from ADB's concessional Asian Development
\nFund and has a 32-year term, including a grace period of eight
\nyears. The interest rate will be 1 percent during the grace
\nperiod and 1.5 percent afterward.<\/p>\n
The Ministry of Public Works' Directorate General of Human
\nSettlements will be the executing agency for the project, which
\nis part of the government's fuel subsidy reduction compensation
\nprogram.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japan-adb-commit-470m-for-infrastructure-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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