RI absorbs only 30% of IDB's loan

RI absorbs only 30% of IDB's loan

The Jakarta Post, Jakarta

Indonesia has absorbed only 30 percent of loans extended by the
Islamic Development Bank (IDB) this year mainly due to problems
related to regional autonomy, a senior official with the
international institution said on Monday.

IDB representative for Indonesia Charmeida Tjokrosuwarno said
the government and the private sector could only absorb US$150
million, or about 30 percent of the $500 million in loans the
bank had extended.

Charmeida said out of the $500 million, $200 million was
allocated for government projects and $300 million for the
private sector.

The slow absorption was due to difficulties faced by projects
in the regions, he said on the sidelines of the opening ceremony
for the Organization of the Islamic Conference (OIC) three-week
trade policy course. He did not elaborate.

This year, the IDB had funded trading activities conducted by
state oil and gas company PT Pertamina, steel mill company PT
Krakatau Steel and chemical manufacturer PT Petrokimia, as well
as numerous health and education projects, he said.

Charmeida said the IDB planned to extend the same amount of
loans next year but was open to the possibility of increasing
their size.

Among planned projects to be funded by IDB loans include the
purchase of three patrol ships worth more than $20 million for
the Custom and Excise office and the construction of a monorail
and toll roads, he said.