WB loan to improve Indonesia's IT<\/p>\n
JAKARTA (JP): The World Bank will give a US$34.5 million loan
\nto Indonesia for the country's Information Infrastructure
\nDevelopment Project, the bank reported yesterday.<\/p>\n
The loan, signed Tuesday, will be used to enhance private
\nsector participation in the provision of information technology
\n(IT), and postal and tourist services.<\/p>\n
According to the bank, the project will help dismantle
\nbarriers into IT services -- by strengthening institutional
\ncapacity and improving the currently weak legal and regulatory
\nframework under which governmental organizations responsible for
\nIT and intellectual property rights (IPR) can operate.<\/p>\n
The project will also provide staff training and advisory
\nservices; assist with developing IPR-related laws and
\nregulations; and conduct policy studies on IPR, electronic
\ncommerce and software competitiveness.<\/p>\n
Inadequate intellectual property protection -- particularly
\nfor software, data and integrated circuits -- is a major
\ndeterrent to direct foreign investment in Indonesia by major IT
\nfirms.<\/p>\n
This problem, combined with the scarcity of trained IT
\nprofessionals and limited IT services, had a negative effect on
\nIndonesia's overall competitiveness and social development, the
\nbank said.<\/p>\n
A second component of the project addresses the limitation in
\nIT technology networks by expanding Indonesia's science and
\ntechnology network and giving the science and technology
\ncommunity more cost-effective access to research and development
\nopportunities.<\/p>\n
Postal and tourist industries will also receive assistance in
\nexpanding their communications and information networks.<\/p>\n
In the postal sector, the legal and regulatory framework will
\nbe strengthened to promote private sector participation and
\nfacilitate new entrants into the sector.<\/p>\n
According to the World Bank, tourist information services will
\nbe extended to regions through the development of a business
\nmodel and pilot projects for an electronic tourist information
\nsystem.<\/p>\n
The total cost of the project cost is estimated at $53.2
\nmillion. Some 65 percent will be financed by the World Bank loan,
\n19 percent by the government, and the remaining 16 percent by the
\nprivate sector.<\/p>\n
About 28 percent ($14.7 million) of the total project cost
\nwill be devoted to improving the legal and regulatory framework,
\n34 percent to expand the science and technology network, 4
\npercent to expand communications and information networks of the
\npostal and tourist sectors, 29 percent to provide technical
\nassistance and 5 percent ($2.7 million) for project management
\nassistance. (08)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/wb-loan-to-improve-indonesias-it-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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