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View all search resultsGovt to China: speed up the loan, or no loan at all
Mochamad Basuki Hadimuljono (Courtesy of tempo
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Mochamad Basuki Hadimuljono (Courtesy of tempo.co) (Courtesy of tempo.co)
Mochamad Basuki Hadimuljono (Courtesy of tempo.co)
The government, through the Public Works and Housing Ministry, has threatened to cancel some infrastructure-related loans from China worth Rp 10 trillion (US$680 million), due to a complex and lengthy disbursement process.
The ministry recorded that such loans would take at least 23 months to be disbursed, after the construction contract was signed.
'It is too long and the Chinese government has to accelerate the process,' said the Ministry's construction division head Hediyanto W Husaini.
'Within one to three months, it has to be done. Otherwise, I will cancel all of them. This is serious and I have talked to the State Owned Enterprises Ministry not to let the loan agreement become an obstacle,' Basuki said, as quoted by kontan.co.id.
The US$680 million loan will be used to finance four toll road projects: Balikpapan-Samarinda and Manado-Bitung toll roads'both of them worth Rp 2 trillion each, along with Solo-Kertosono and Cileunyi-Sumedang-Dawuan toll roads worth Rp 3 trillion each.
Public Works and Housing Minister Basuki Hadimuldjono said the threat indeed was issued due to the lengthy and complex loan disbursement. Basuki also urged Finance Minister Bambang Brodjonegoro and National Development Planning Minister Sofjan Djalil to help accelerate the process. (ags/bbn)(++++)
