WB approves $400m loans to Indonesia<\/p>\n
JAKARTA (JP): The World Bank announced in Washington on
\nTuesday its approval of US$400 million in new loans to Indonesia
\nfor the country's poverty alleviation and water resource
\nimprovement programs.<\/p>\n
World Bank's country director Mark Baird said the loans were
\nan important part of the bank's program of support to Indonesia.<\/p>\n
\"The Urban Poverty Project (UPP) is so important because it is
\nall about building communities and empowering people,\" said Baird
\nin the bank's latest statement.<\/p>\n
Of the $400 million, approximately $100 million was allocated
\nto UPP, which targets people who were poor before the financial
\ndownturn began and suffered more due to high inflation or loss of
\nincome.<\/p>\n
The bank said UPP encourages urban communities to develop
\ninvestment priorities to generate employment and income and build
\npublic infrastructure through labor intensive methods.<\/p>\n
Funds for small public infrastructure works will be
\ndistributed through grants, while funds for economic activities
\nwill have to be repaid within a year at a commercial rate and
\nrepay schedule reflected by the cash flow of the financed
\nactivity.<\/p>\n
The remaining $300 million was given as a Water Resources
\nSector Adjustment Loan (WATSAL), an integrated program of policy,
\ninstitutional, management and regulatory reforms in the water
\nresource sector.<\/p>\n
The bank said that the proposed reforms represent a new way of
\ndoing business in the water sector of Indonesia.<\/p>\n
In conjunction with the reforms, Indonesia will also adopt a
\nNational Water Resources Policy, which will be implemented and
\ncoordinated by a new institution, an interministerial National
\nWater Council, the bank said.<\/p>\n
The World Bank's approval of the $400 million loan comes
\nalmost at the same time Indonesia starts its 16-day election
\ncampaign period. This has sparked criticisms from government
\nopponents in Indonesia and development activists in Washington as
\nwell as the U.S. government.<\/p>\n
American economist Jeffrey Winters was quoted by Antara on
\nTuesday expressing his concern that the loans might only be
\nutilized by the ruling party Golkar during the campaign and
\ngeneral election scheduled for June 7.<\/p>\n
\"It (the approval of the loans) will be just the same as
\nthough (the World bank) gives campaign funds to Golkar Party,\" he
\nsaid, adding that Golkar might use the money to support its
\nattempts to maintain the status quo.<\/p>\n
The World Bank's board will consider on Thursday two
\nadditional adjustment loans, the $600 million social safety net
\nadjustment loan and the $500 million policy reform support loan
\nII.<\/p>\n
The loans are part of a broad program of external assistance
\nprovided by the International Monetary Fund, the World Bank, the
\nAsian Development Bank and bilateral donors to Indonesia. (cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/wb-approves-400m-loans-to-indonesia-1447893297",
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