Wed, 31 Aug 1994

Barry, Mar'ie ink aid deal

JAKARTA (JP): The United States Agency for International Development (USAID) yesterday agreed to provide US$125 million in loans and $25 million in grants to improve Indonesia's municipal management and services in the coming five years.

The agreement was signed here by Minister of Finance Mar'ie Muhammad and U.S. ambassador to Indonesia Robert L. Barry.

A spokesman for the Ministry of Finance, Agus Haryanto, quoted Mar'ie as saying that the $125 million loan is intended to support efforts by the municipal authorities to realign its services throughout the country as well as develop infrastructure in anticipation of increased urbanization.

Haryanto did not elaborate on which cities are designed to tap the aid.

"Of the $25 million grant, some $10 million will be intended for technical assistance to the municipal financing project, while the other $15 million is for urbanization development involving the private sector," Haryanto said.

He noted that USAID has thus far provided $120 million in loans to the Indonesian government to develop housing projects between 1988 and 1993. (fhp)