Govt Take Caution in Accepting ADB Loan for Palu: Kalla
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Kamis, 1 Januari 1970 07:00 WIB
TEMPO.CO, Jakarta - Vice President Jusuf Kalla or JK said the government took caution in receiving the aid offered by the Asian Development Bank (ADB) to handle the disaster aftermath in Palu and Donggala, Central Sulawesi.
JK explained ADB offered relief aid for disaster-hit regions in the form of long-term loans for 30 years which amounted to US$1 billion.
“It is truly more attractive than if we use the State Budget. But we should not carry it too far,” said JK in his office, Jakarta, Tuesday, Oct 16.
The government’s needs for the reconstruction and rehabilitation in Palu and Donggala did not as much as the amount of aid offered by ADB, JK mentioned. However, he did not disclose the estimated figure as it still required further discussions.
The Indonesian government, he added, had received financial assistance through donation although it was not adequate for the rehabilitation program. “World Bank gives US$5 million and ADB US$3 million. But that is not enough for the reconstruction project,” JK noted.
Earlier, ADB president offered a loan for disaster handling worth US$1 billion to the Indonesian government, which divided into US$500 million emergency fund and US$500 million for infrastructure reconstruction. The loan was not a regular loan averagely US2 million per year.
The multilateral development finance institution also offered technical help and assistance in drafting the strategy and reconstruction plan for Palu, Central Sulawesi.
VINDRY FLORENTIN