World Bank Offers RI US$11b in Loans

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  • TEMPO.CO, Jakarta – The World Bank has offered the country loans worth Rp11 billion for next four years, with World Bank president Jim Yong Kim saying the bank was committed to tightening ties between both parties that had lasted for six decades.

    “We want to realize one of largest financing commitments in the world to Indonesia,” he said in Jakarta on Wednesday, May 20, 2015. He added the World Bank would also share its global know-how and technical aptitudes in multiple sectors, including health, energy, education, maritime economy and regional public services.

    Jim Yong Kim said the US$11 billion in loans stemmed from three international financial institutions: US$8 million from the International Bank for Reconstruction and Development (IBRD) and US$3 billion from the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). 

    “The one from IBRD rose by 25 percent from that in the period four years ago,” he said.

    The IBRD has channeled loans to developing and low-income countries it deemed credit-worthy. The IFC has funded investment projects, mobilized funds in the global financial market and rendered consultation services to private parties and governments. The MIGA, meanwhile, provides political risk guarantees to investors and borrowers.

    Kim said the World Bank sought to eradicate extreme poverty by 2030 and improve both the income and welfare of 40 percent of the world’s poorest nations in the low and middle revenue categories.

    "We want to make it easier for member countries to gain benefits from our advantages. Our extensive experience in the development sector is coupled with long-term financial support,” he said.