Asian Development Bank to help Bali recover

Asian Development Bank to help Bali recover

William J. Willitts, Reuters, Sydney

The Asian Development Bank (ADB) will restructure part of its
Indonesian lending to help the tourist island of Bali recover
from the devastating effects of the October 12 bombings,
president Tadao Chino said on Wednesday.

The ADB chief said the nightclub bombings, which killed over
180 people, including about 90 Australians, was a horrific
tragedy that threatened the wider Indonesian economy, adding that
he was concerned about its impact on Asia as a whole.

"Incidents like the Bali bombing can have a damping effect on
tourism and also on investor confidence, this is very serious,"
Chino said at a news conference in Sydney before giving a speech
on reducing poverty in Asia.

In the past month, hotel vacancy rates in Bali have plummeted
as Australia and other governments warn against travel to the
resort island.

Chino said that in addition to steps taken by Indonesia "to
improve and restore confidence", the ADB wants to redirect some
of its lending to help Bali.

An Australian parliamentary study says Bali accounts for 40
percent of Indonesia's US$5.4 billion in tourism revenue.

"There are so many projects which are ongoing, which are still
in the process of formulation. These will be reviewed and
refocused to give emphasis, focus on Bali island," Chino said.

Last year, the Manila-based multilateral lending organization
approved public and private loans worth $500 million for
Indonesia, making it the fourth-largest recipient of the $5.4
billion in loans it approved for the region.

Chino said the Bali bombings fueled a concern held by foreign
investors about the level of risk in Asia.

"These incidents are taken as symbolic of the risks and unrest
of the region," Chino said.

"External investors will have concerns that Asia is a place
where this kind of thing happens because there are several
incidents, not only the Bali bombing, but many examples of
security concerns in many parts of Asia," he said.

"I am very concerned about the perception of Asia as a whole."