World Bank Provides Loan with Better Terms: Minister Andrinof

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  • TEMPO.CO, Padang - The Indonesian government still relies on the World Bank despite President Joko “Jokowi” Widodo’s speech at the Asia-Africa Conference calling on countries in the world not to depend on international donor institutions.

    Head of National Development Planning Board and Minister of National Development Planning, Andrinof Chaniago, clarified on Sunday, May 24, 2015 that Jokowi called on countries to depend not only on the International Monetary Fund (IMF), the World Bank and the Asian Development Bank (ADB).

    Therefore, Andrinof added, the Indonesian government would seek other debt resources so that the World Bank would loosen up the requirements over the fund.

    “Now we are free to utilize the fund,” he said.

    Andrinof explained that the government was no longer required to hire foreign consultants referred by the World Bank. The government was also given the freedom to set the criteria for the project. In addition, the government would not have to follow the procedures on land acquisitions set by the World Bank and its consultants.

    Earlier, the World Bank planned to distribute a new loan of US$11 billion to Indonesia for the next three to four years. Of the total loan, US$8 billion would come from the International Bank for Reconstruction and Development (IBRD) and the rest of US$3 billion would be provided by the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).