Firms told to make use of ADB loans

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)