Firms told to make use of ADB loans

JAKARTA (JP): Local companies should take advantage of the US$55.9 billion funds offered by the Manila-based Asian Development Bank (ADB) this year for the region, an official of the Indonesian Chamber of Commerce and Industry (Kadin) said on Tuesday.

"ADB sees businesses in Indonesia have not taken full advantage of its funding schemes," Kadin secretary-general Iman Sucipto Umar said in announcing an upcoming ADB seminar.

ADB's biggest loan to Indonesia last year amounted to $400 million to the state gas company for the installation of gas pipes in Sumatra, Iman said.

Local companies have been reluctant to make use of the lending schemes either because of a lack of knowledge or poor competitive spirit, he added.

The seminar, sponsored by Kadin, will be held at the Shangri- La Hotel on May 16 to May 17.

Iman said the seminar would highlight the advantages of ADB schemes and provide information on how to apply for them.

ADB is providing loans this year for development in energy, transportation, urban development, water supply, telecommunications, health, education, environment, finance and legal services.

ADB is a multilateral development financial institution that promotes social and economic progress in the Asia-Pacific region through the extension of loans and equity investments. It provides technical assistance for the preparation and execution of development projects and programs, as well as for advisory services.

It also promotes and facilitates investment of public and private capital for development and responds to requests for assistance in coordinating development policies and plans of its developing member countries.

It was established in 1966 by 31 member countries through their respective governments. Membership has since grown to 58 countries, consisting of 42 in the Asia-Pacific and 16 outside the region. (10)