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JAKARTA, INDONESIA - ADB is prepared to provide USD800 million to USD900 million in new loans to Indonesia in 2006, and USD1 billion to USD1.1 billion in 2007. The funds will be sourced from ADB’s ordinary capital resources and its concessional funding window.
This proposed scale of assistance is a vote of confidence in Indonesia’s macroeconomic performance and the Government’s commitment to policy reforms. ADB’s support will focus on infrastructure and social sectors, with the aim of increasing public and private investment in development.
The Consultative Group on Indonesia, including ADB and other development partners, met today to assess the country’s needs and formulate the best forms of financial assistance. Indonesia came to the meeting in a relatively stronger position than in years past. “The Government’s macroeconomic management has helped bring the country’s economic indicators back to favorable pre-1997 Asian financial crisis levels.
ADB is also assisting with the country’s reconstruction needs after the 27 May earthquake with an initial offer of USUSD10 million in immediate grant assistance and USD50 million reprogramming of ongoing soft loans, for a total of USD60 million.
ADB has worked closely with the Government of Indonesia and development partners to assess the damage caused by the earthquake, and coordinates with other donors and organizations to provide the most effective assistance.
Indonesia is a founding member of ADB and its sixth largest shareholder. By the end of 2005, it had received 272 public sector loans amounting to USD20.7 billion, along with 480 technical assistance (TA) projects amounting to USD240.449 million. Measured by public sector loan approvals, Indonesia is ADB’s largest client, and its second largest recipient of TA support.
Source : Asian Development Bank
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