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Public Works and Housing Ministry discusses tourism development with World Bank
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Lake Toba, North Sumatra, as seen from a coffee plantation. (Shutterstock/File)
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ublic Works and Public Housing Minister Basuki Hadimuljono recently met with the World Bank director for Indonesia Rodrigo A. Chavez to discuss partnership programs for housing and tourist destination development.
At the meeting they discussed two new programs. The first focuses on improving access to affordable housing for low-income households, the second on "infrastructure development in three priority tourist destinations: Lake Toba, Borobudur and Mandalika,” said Hadimuljono.
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Within the housing sector, the World Bank will give a loan to the National Affordable Housing Project. The loan is worth US$450 million, with US$225 million transferred through the Independent Housing Stimulus Assistance Program (BSPS).
The remaining US$225 million will be allocated for housing loans (KPR), which will target people who have never received mortgage liquidity facility for low-income people (FLPP), interest margin subsidies (SSB) and down payment assistance subsidies (SBUM).
“The program will be implemented from July, 2017 until 2020 with locations spread across the nation, targeting 1.2 million householders who work in formal and informal sectors,” Hadimuljono added.
The second partnership program focuses on basic infrastructure development in three national tourism strategic locations (KSPN), Lake Toba, Borobudur and Mandalika. The program will begin in August this year starting with the development of an integrated master plan for the development of priority tourist destinations that is expected to take 12 months to finish. (asw)
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The budget for the development of the master plan for the aforementioned three locations is US$6 million with $US4 million coming in the form of a loan and the remaining $US2 million as a grant. The implementation of the plan will be conducted over 60 months, for which the World Bank agreed to lend US$200 million.
Tourism Minister Arief Yahya explained that the US$200 million loan from the World Bank had been disbursed, with the loan contract signed in June 2017. The money will be divided for two phases, preparation and execution. In order to develop all 10 priority destinations into “new Balis,” the ministry requires around US$20 billion. (asw)
