World Bank gives Indonesia $124 million in loans

World Bank gives Indonesia $124 million in loans

JAKARTA (JP): The Washington-based World Bank approved on Wednesday
two loans totaling US$123.9 million for the development of higher
education and farming on reclaimed swampland.

The World Bank office here said yesterday that $58.9 million of the
loans would be used to improve higher education in anticipation of a
higher demand for graduate education.

The bank noted that graduate education and university research
deserve special attention as part of an overall public investment
strategy in higher education.

The other $65 million of the loan funds will finance the program to
improve the productivity of already reclaimed swampland for farming.

The project aims not only to alleviate poverty but also to assist the
Indonesian government in managing part of the coastal zones and to
ensure that future swamp development proceeds only with full regard to
sound environmental practices, the bank added.

The main elements of the project which will cost a total of $106
million include the improvement of water management, specific
agricultural research and extension program, cultivation of coconuts and
road and water transport.

Both loans are repayable within 20 years, including five years of
grace period, and are subject to the bank's variable interest rate which
is currently 7.27 percent a year. (vin)