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RI to get $2b in loans from World Bank for development
The World Bank will lend US$2 billion for the country's development programs this year, the National Development Planning Board (Bappenas) announced Thursday
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The World Bank will lend US$2 billion for the country's development programs this year, the National Development Planning Board (Bappenas) announced Thursday.
The government could receive even more loans than those previously promised, according to Bappenas director for international financing Dewo Broto Joko Putranto.
"The (additional) loans can be included as loans allocated for 2009," said Dewo, as quoted by Antara.
The board will wait until it learns the exact amount needed to plug this year's state budget deficit before determining how much to propose the World Bank allocate.
World Bank spokesman Randy Salim said the $2 billion in loans would be divided into program loans and project loans.
"About $1.2 billion of the loans will be spent on programs related to climate change, education and infrastructure policy development," Salim told The Jakarta Post.
"On top of this amount, there is another $400 million in programs related to poverty alleviation."
The remaining $400 million, he said, would go toward developing roads, dams and flood-control projects and improving tax administration.
"Indonesia and the World Bank are also negotiating $300-$400 million in additional loans for infrastructure development," Salim said.
This month the World Bank will release its "Infrastructure Development Policy Loan", in which some $200 million will be channeled to support infrastructure improvement in Indonesia.
In a related development, the director general for state debt management, Rahmat Waluyanto, said the government would get an additional $2.9 billion in program loans this year, as reported by Antara.
Of this amount, $1.1 billion would come from the Asian Development Bank and $500-$600 million from the Japan Bank for International Cooperation (JBIC).
Waluyanto said part of the JBIC loan would be spent on programs related to climate change.
"About $1.2 billion worth of the loans will be used to plug the state budget deficit this year," Waluyanto said. (JP/rff)
