ADB Set to Provide More Loans for Indonesia

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  • TEMPO.CO, Jakarta - The Asian Development Bank (ADB) is ready to multiply the value of its future loans for Indonesia. The gesture is based on, among others, the fact that there has never been any problem in debts payment over the last eight years.

    "Will we raise our loan disbursement by three or four times," ADB Indonesia director Steven R. Labor said yesterday.

    This year, the ADB has earmarked a new debt of US$ 1.5 billion for Indonesia, an increase of from last year's US$710 million.

    Steven said US$1 billion of the loan will be used for the construction of basic infrastructure projects such as sanitation, agriculture, water, and roads. The remaining US$500 million will likely be allocated to Bappenas' green book, with the potential of becoming a carryover fund for the next year or as a standby loan post.

    Haryo Aswicahyo, an international economic observer from CSIS, asked the government to prioritize domestic lending to avoid the risks of collapsing currency exchange rates.

    ANDI RUSLI | ALI HIDAYAT | SINGGIH SOARES