The Asian Development Bank (ADB) has reiterated its commitment to provide a US$2 billion loan to Indonesia this year and says it plans to invest in key sectors through its private operations.

During a meeting at the State Palace on Wednesday, ADB president Takehiko Nakao told President Joko “Jokowi” Widodo that it would continue channeling around $2 billion in government lending to Indonesia in the medium term.

Last year, the lender conveyed its intention to provide a total of $10 billion in credit within five years to help Southeast Asia’s largest economy enhance its infrastructure, which it sees as essential in spurring economic growth and generating jobs.

Apart from that, the ADB will also pour investment into various areas, including clean and renewable energy, agribusiness, hospitals and pharmaceuticals, through its operations in the private sector, Nakao said.

Between 2016 and 2019, the Manila-based lender has said it will prioritize natural-resource management, education, energy, finance, transportation, and water services for assistance.

In 2016, the bank disbursed $1.75 billion, including $17 million in grants, to Indonesia, of which $1.25 billion was channeled to the government. The remaining $475 million comprised loans and equity investments in various geothermal and gas projects to support Indonesia’s clean-energy programs.

Nakao also specifically praised Indonesia for its achievement in carrying out reforms that have allowed the economy to continously expand and shelter from the impact of the prolonged global financial crisis.

“I am highly impressed by the government’s strong commitment to policy reforms that have strengthened market confidence and helped ensure more Indonesians benefit from economic gains,” Nakao said as quoted in a press statement.

Driven by rising private sector investment and constant strong consumer spending, Indonesia’s economy will grow by 5.1 percent this year, from 5 percent last year, according to an ADB forecast.

Inflation, which eased to 3.5 percent in the past year, will surge to around 4 percent, it says.

The regional lender highlighted the significant impact of 14 policy packages comprising a set of reforms to boost investment, a key driver of domestic growth, and enhance its competitiveness.

Naoko pointed out the improvement of Indonesia’s ranking in the World Bank’s ease-of-doing-business index as a real result of these reforms.

More than 500 companies, for instance, have benefitted from the revised negative investment list, promising to invest $12.9 billion in the country.

Separately, Finance Minister Sri Mulyani Indrawati said that in his third visit to Indonesia Nakao aimed to assess Indonesia’s development programs. Among the programs that the ADB president discussed with Jokowi were those aimed at improving the investment climate and accelerating economic growth.

“The President explained our economic development as well as the challenges of infrastructure development, the tax amnesty program and the efforts to reduce poverty,” Sri Mulyani told journalists.

During his two-day visit, Nakao is sceduled to visit two ADB-supported polytechnics in Surabaya, East Java, that focus on marine education and electronics, to inaugurate technology centers in five polytechnics and to visit city sanitation projects.

“This is related to the President’s focus on boosting vocational training in the future,” Sri Mulyani said.

Indonesia has established 10 vocational schools nationwide in a bid to provide quality training to employees and produce ready-to-work human resources in several strategic sectors, such as the maritime, electronics, shipping, agriculture and manufacturing sectors.

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