World Bank agrees on loan to Indonesia

World Bank agrees on loan to Indonesia

JAKARTA (JP): The World Bank has formally agreed to provide a
US$381 million loan to finance infrastructure projects in
Indonesia.

The loan agreement was signed in Washington on Friday by the
Indonesian Ambassador to the United States Dorodjatun Kuntjoro-
Jakti and by the World Bank's Acting Vice President for East
Asian and Pacific Region Javad Khalilzadeh-Shirazi.

Under the agreement, the World Bank will provide a US$381.2
million loan to the Indonesian government to finance the
development of infrastructure facilities, an education program
and environmental conservation.

Dorodjatun said the new loan commitment indicated the World
Bank still had confidence in Indonesia.

"We are very thankful that the World Bank is still willing to
give financial aid to Indonesia given the current economic
crisis," Dorodjatun said.

According to the embassy, around $234 million of the loan
will be used to finance the development and rehabilitation of
roads in Northern Sumatra, and $6.9 million will be used to
finance a coral reef rehabilitation and management project.

About $103.5 million of the loan will be used to finance the
development of a basic education project for the poor in West
Java.

The loans will also be used to finance rural development
projects in Maluku ($16.3 million) and Bengkulu ($20.5 million).

Meanwhile, Khalilzadeh-Shirazi said the aid proved the World
Bank still respected Indonesia's progess in developing education,
environmental conservation and infrastructure. (gis)