IDB helps Indonesia

JAKARTA (JP): The Islamic Development Bank will give Indonesia a US$120 million soft loan to support the procurement of fertilizer for farmers.

Head of the Agribusiness Agency at the Ministry of Agriculture Ato Suprapto said the funds would be extended to state-owned fertilizer companies PT Petrokimia Gresik and PT Pupuk Sriwijaya.

"Petrokimia will use the fund to import superphospate fertilizers, SP-36 and rock phosphate direct application, while Pusri will use the fund to import KCl (Potassium chloride) and TSP (Trisuperphospate)," Ato said.

He said the soft loan would carry an interest rate of four percent per annum, below the London Inter-Bank Offered Rates (Libor), and would have a grace period of 10 years. (gis)