The government, in concert with the World Bank and Asian Development Bank (ADB), plans to inject up to Rp4 trillion ($340 million) into a special body that will provide loans to investors interested in developing long-term infrastructure projects, a senior government official said on Tuesday, The Jakarta Globe reported.<\/p>\n
\"Looking at the current conditions, we expect the project to move forward and provide funding should developers have difficulty securing financing while banks have only short-term funds,\" Wahyu Utomo, the coordinating minister for the economy's deputy assistant for infrastructure and underdeveloped areas told reporters at a seminar in Jakarta.<\/p>\n
Utomo said the body to be called simply \"Infrastructure Funds\u201d would be set up in February and should be operational sometime in the first half of this year<\/p>\n
The government expects to make a contribution of Rp1 trillion to the body, with the rest coming from ADB and World Bank. \"Indonesian banks' balance sheets mostly consist of short-term deposits,\" said P.S. Srivinas, lead financial economist at the World Bank in Jakarta. \"Therefore, they cannot finance long-term loans like those for an infrastructure project.\"<\/p>\n
Dedy S. Priatna, the state minister for national development planning's deputy for infrastructure, said Indonesia would need Rp1.429 trillion to finance the infrastructure projects the government has planned for 2010-2014. However, he indicated that on its own the government likely could only afford 30% of that total. The rest, it is hoped, could be secured through public-private partnerships.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/rp4t-to-be-injected-for-new-infrastructure-body-1234937027", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }