RI gets $228.6m in soft loans, grants<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The World Bank, the Asian Development Bank and Kreditanstalt
\nfuer Wiederaufbau (KfW) of the German government all approved a
\ncombined amount of US$228.6 million in soft loans and grants to
\nIndonesia on Wednesday.<\/p>\n
Overall, the World Bank is the biggest contributor having
\npledged loans worth $200 million, followed by KfW, which promised
\nto provide $18 million in loans.<\/p>\n
The remaining $10.8 million will be in the form of grants from
\nKfW ($7 million) and the Asian Development Bank ($3.6 million)
\nrespectively.<\/p>\n
A World Bank spokesman said here that the loan was consistent
\nwith the bank's assistance strategy and would be used to finance
\nroad improvements in the eastern parts of the country.<\/p>\n
The project will cover a total of 15 provinces in Indonesia's
\neastern islands, namely Kalimantan, Sulawesi, Bali, Nusa
\nTenggara, Maluku and Irian Jaya.<\/p>\n
\"This project is in line with the government's plan to bridge
\nthe development gap in the lagging eastern provinces of
\nIndonesia; better infrastructure will boost economic growth in
\nthese provinces through improved access,\" said Hatim Hajj, an
\nofficial with the World Bank's East Asia and Pacific department
\nas quoted by Dow Jones.<\/p>\n
\"The project will help improve access to employment
\nopportunities, health, education, and other social services and
\nfacilities, and hence help to reduce poverty,\" he added.<\/p>\n
On Wednesday, officials from Indonesia's Ministry of Finance
\nalso signed a loan agreement with KfW, a press release said.<\/p>\n
The loans and grants were funded by the German Federal
\nMinistry of Economic Corporation and Development.<\/p>\n
While the soft loans are aimed at raising the standard of
\nmaritime education and training in the country, the purpose of
\nthe grant is to provide clean water for the population of three
\ndistricts in Nusa Tenggara Timur (NTT) province.<\/p>\n
The loan will provide funds for maritime simulators,
\nlaboratory equipment, teaching materials and consultancy
\nservices.<\/p>\n
As for the grant, it will focus on the construction and
\nrehabilitation of water supply systems and shall contribute to a
\nsustainable reduction of drinking water-related diseases.<\/p>\n
Meanwhile, ADB, through the Asian Currency Crisis Support
\nFacility (ACCSF), will provide two technical assistance grants
\namounting to $3.6 million for Indonesia for the reform of state-
\nowned enterprises (SOEs), with the government of Japan providing
\nall the funds.<\/p>\n
Of the total grants, $1 million will be used to accelerate the
\nSOE reform program, while the remaining $2.6 million will be
\nallocated to restructure SOEs.<\/p>\n
Under the project, ADB will help the government introduce a
\nperformance incentive scheme in 30 SOEs, restructure at least 10
\nand privatize at least five.<\/p>\n
The project will also provide training program for 120
\ngovernment officials, SOEs managers and staff in the fields of
\ncorporate governance, restructuring procedures and privatization
\noptions.<\/p>\n
The project is expected to be completed by March 2003.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ri-gets-2286m-in-soft-loans-grants-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }