RI gets $200m for policy reform program<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Asian Development Bank (ADB) has provided another US$200
\nmillion in loans for Indonesia to help achieve its millennium
\ndevelopment goals of sustainable economic growth and poverty
\nalleviation through better macroeconomic policies.<\/p>\n
The loans will be used to finance a Development Policy Support
\nProgram, the bank said in a statement on Friday.<\/p>\n
The program includes a series of structural reform packages
\nfocusing on establishing a sound public financial management
\nsystem and an effective utilization of fiscal resources,
\nimproving investment rules, strengthening the financial sector,
\nand reorienting public spending to reduce poverty and
\nunemployment.<\/p>\n
It will support the government's Medium-Term Development Plan
\nfor 2004-2009, which seeks to stimulate higher and more
\nsustainable economic growth of 7 percent a year by 2009. The plan
\nalso aims to halve poverty to 8.2 percent by that date, from 16.6
\npercent in 2004.<\/p>\n
\"The program is a key pillar of ADB's emerging country
\nstrategy and program for Indonesia for 2006-2010,\" Shamshad
\nAkhtar, the director general for the bank's Southeast Asia
\nDepartment, said.<\/p>\n
Shamshad hoped the program would increase government reform
\nand strengthen public service delivery to the poor.<\/p>\n
Bank chief economist for Indonesia Ramesh Subramani said the
\nprogram would help the government continue a process of
\nconsolidation.<\/p>\n
\"Moving forward, the government (of Indonesia) is fully
\ncommitted to further strengthening fiscal management, with the
\nfocus on tax reforms, debt sustainability and reorienting public
\nexpenditures toward reducing regional disparities and achieving
\nthe (United Nations) Millennium Development Goals,\" he said.<\/p>\n
The loan will be delivered in a single tranche from ADB's
\nordinary capital resources. It has a 15-year term, including a
\ngrace period of three years, with interest determined under ADB's
\nLIBOR-based lending facility. The executing agency is the
\nMinistry of Finance.<\/p>\n
The government needs an estimated $3.6 billion in total
\nexternal financing for the 2005 budget, which consists of $1.25
\nbillion in program loans to support its reform policies, and
\n$2.35 billion in project disbursements.<\/p>\n
In addition to the bank's loan, the Government has requested
\n$400 million from the World Bank and parallel financing from
\nJapan, with the amount yet to be determined.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-gets-200m-for-policy-reform-program-1447893297",
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"sponsor": "Okusi Associates",
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