WB approves $98m loan for education in Sumatra

WB approves $98m loan for education in Sumatra

JAKARTA (JP): The World Bank has approved a US$98 million loan
to support the Sumatra Junior Secondary Education Project, the
third in a series of Indonesian education projects totaling $301
million.

The loan was approved in Washington on Tuesday, the bank's
East Asia and Pacific Regional headquarters stated there
yesterday.

The project aims to develop human resources in Indonesia to
transform its economy from one based on labor and natural
resources to one propelled by industrialization and technology.

According to its ambition to become an industrialized country,
Indonesia has been putting more of its teenagers through
secondary schools to build an internationally competitive
workforce.

Structural transformation of the economy has stimulated growth
and employment rates in manufacturing, construction, transport
and communications -- sectors that increasingly need skilled
workers. The agricultural sector has shrunk by comparison.

By targeting five provinces in Sumatra, the money will be used
to build more schools and provide scholarships to 32,000
students.

Improvements in education quality are also targeted, by
providing more equipment to schools, advanced training to
teachers and better education management.

The project is estimated to cost US$144 million, 71 percent of
the cost is to be financed by the US$98 million loan from the
World Bank and 29 percent by the Indonesian government.