RI swaps foreign debt for education

RI swaps foreign debt for education

JAKARTA: Indonesia has agreed to a 23 million euro (US$29 million) debt swap with Germany, exchanging repayments for badly needed education projects, a government official said on Wednesday.

Jannes Hutagalung, a deputy education minister, told AFP the deal is to be finalized next Monday would see Jakarta channeling funds meant for paying off its debt into establishing junior high schools in eastern Indonesia.

Lack of access to education is a major concern in Indonesia, the world's fourth most populous nation, where widespread poverty prevents many children from attending classes. In August the U.S. government signed a $468 million development deal including education programs.

Germany's debt-swap deal will be its second with Indonesia, following a 25 million euro swap for environmental projects, Hutagalung said, adding that more deals were in the pipeline. -- AFP