ADB to give Indonesia $3.5b in aid

ADB to give Indonesia $3.5b in aid

MANILA (Reuters): The Asian Development Bank (ADB) said
yesterday it would grant total assistance of US$3.5 billion to
Indonesia between 1998 and 2000.

The Manila-based multilateral organization said in a statement
Indonesia would receive four quick-disbursing loans totaling $1.5
billion.

In addition, the bank would also support projects to improve
infrastructure and human resources with disbursements totaling $2
billion.

The four quick-disbursing loans would go toward the banking
sector, capital market development, enhanced public financial
management, and increased competitiveness of the industrial and
trade sectors, the ADB said.

The statement did not give the terms under which the four
loans and $2 billion support were being given.

"It is stressed that the bank's assistance is not simply a
response to turbulence in regional financial markets but reflects
the continuity in the bank's country strategy and support for
Indonesia," the statement said.

The bank said it had been talking to the Indonesian government
about increasing the country's competitiveness by allowing more
domestic as well as international competition.

It praised Jakarta for "skillfully charting an economic reform
strategy that has succeeded in ensuring macroeconomic
stability..."

"In view of the current instability in regional financial
markets, the assistance package reflects the shared view of the
bank and the Indonesian government that it is vital to accelerate
the implementation of measures ... for a more transparent,
efficient and dynamic banking system and capital market," it
said.

"This is an opportune moment for Indonesia to reinvigorate its
efforts to improve its international competitiveness," the
statement said.