ADB approves $484,000 grant for RI

ADB approves $484,000 grant for RI

Bloomberg
Jakarta

The Asian Development Bank (ADB) approved a US$484,000 technical
assistance grant to help the government reduce poverty by
improving services for the poor, including health care and
education.

The aid will go to support five of the poorest regional
governments -- a province, a city and three districts -- the bank
said in an e-mailed statement. The government will provide
$214,000 for the project, which will be completed in early 2004.

"Many regional governments have inadequate resources to
accelerate development, particularly in rural areas, and to
continue government efforts to reduce poverty," said Shiladitya
Chatterjee, the bank's chief programs coordination specialist in
Jakarta.

Indonesia needs external aid to spur economic growth and help
finance a budget deficit estimated at Rp 34.4 trillion (about
$3.9 billion) this year. Jakarta estimates growth of 4 percent
this year.

A United Nations report last year said more than half of
Indonesia's 212 million people are below the poverty lines,
living on less than $2 a day.

With an estimated 40 million of its citizens jobless, economic
growth is key to reducing poverty and maintaining social
stability in the world's fourth-most populous country.

ADB will disburse $800 million to the country this year for
budget financing and to fund poverty reduction projects. The
donor lent $994 million last year.