TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

ADB commits US$2.6 billion to support Indonesia in 2019

  • Winny Tang

    The Jakarta Post

Fiji   /   Wed, May 1, 2019   /   07:05 pm
ADB commits US$2.6 billion to support Indonesia in 2019 Participants gather in Nadi, Fiji, for the 52nd Asian Development Bank’s (ADB) board of governors meeting being held from May 1 to 5. (Courtesy of Asian Development Bank/-)

Asian Development Bank (ADB) has committed US$2.6 billion this year to support Indonesia, primarily in developing infrastructure projects, said Ramesh Subramaniam, the ADB director general of the Southeast Asian department in Fiji on Wednesday.

ADB plans to give loans to help finance two large energy projects. One will be a $600 million loan for power distribution, covering Kalimantan, Maluku and Papua and another is a $500-million project loan for scattered gas-fired power plants in Sulawesi, Kalimantan as well as East and West Nusa Tenggara provinces that the bank had been working on with state utility company PLN.

Besides that, ADB is also committed to  supporting the Indonesia Infrastructure Finance Facility, which will finance various infrastructure projects in energy, waste management and water supply sanitation, particularly at the local government level, across the country.

In addition, ADB plans to provide more funding to support disaster recovery in Palu, Central Sulawesi. Last year, the international organization pledged $1 billion for disaster recovery programs in Indonesia.

“In order to carry that commitment forward […] we are working on a new project loan, which needs board approval in late May,” Subramaniam said.

The loans will be used to improve Palu’s infrastructure such as roads, water sanitation and irrigation facilities that were shattered as a result of the soil liquefaction phenomenon.

ADB currently runs 19 projects valued at $3.9 billion. One of the projects includes helping 120,000 rural households get connected to electricity and upgrading 24,000 kilometers of rural roads. (evi)


Editor's note: This article was updated on May 2, 2019 to accommodate clarifications from Asian Development Bank.