ID :
35026
Thu, 12/11/2008 - 13:15
Auther :
Shortlink :
http://m.oananews.org//node/35026
The shortlink copeid
WORLD BANK APPROVES US$950 MILLION LOAN FOR RI
Jakarta, Dec 10 (ANTARA) - The World Bank approved two proposed loans worth US$ 950 million to Indonesia to improve the investment climate in the country, an official said.
Through the loans, the World Bank supports Indonesia's efforts at increasing the number of investors in the infrastructure sector especially electricity, water and sanitation, and public partnership development, director of the World Bank office in Indonesia, Joachim Von Amsberg, said here Wednesday.
According to him, Indonesia had strong position in overcoming the current financial crisis. Therefore, he said, the World Bank loans were expected to help Indonesia strengthen its economy to face the impact of the global crisis next year.
He expressed hope that during the global crisis, Indonesia would keep acting cautiously in managing its macro-economic sector since the global uncertainty was still high.
He also said the World Bank hoped that by the end of 2010, the loans could help Indonesian ministries increase their capital expenditures by 25 percent and raise power subsidy for lower income people.
Moreover, the loans were also designed to help Indonesia prepare a competitive and transparent tender for public-private partnership transactions and significantly reduce garbage disposals in big and small cities.
The chief economist of the World Bank Indonesia, William E Wallace, said that the US$950 million loans which would be paid in 24,5 years were expected to support the government's program of giving economic encouragement.
"The US$ 950 million funds can be directly put into the State Budget (APBN) and the government can distribute it to the investment sector," he said.
According to Wallace, the Indonesian government would enhance its expenditure distribution to support the economic stimulus.
"In the first semester, the government is apparently ready to increase its expenditure distribution to support the economy and anticipate the impact of the global financial crisis," he said.
The stimulus, Wallace said, could at least increase foreign exchange reserves though not having a significant impact on the rupiah.
"I assume that the impact will be very small. However, it will be considered as an addition to Indonesia's liquidity and foreign exchange reservea," he explained.
Through the loans, the World Bank supports Indonesia's efforts at increasing the number of investors in the infrastructure sector especially electricity, water and sanitation, and public partnership development, director of the World Bank office in Indonesia, Joachim Von Amsberg, said here Wednesday.
According to him, Indonesia had strong position in overcoming the current financial crisis. Therefore, he said, the World Bank loans were expected to help Indonesia strengthen its economy to face the impact of the global crisis next year.
He expressed hope that during the global crisis, Indonesia would keep acting cautiously in managing its macro-economic sector since the global uncertainty was still high.
He also said the World Bank hoped that by the end of 2010, the loans could help Indonesian ministries increase their capital expenditures by 25 percent and raise power subsidy for lower income people.
Moreover, the loans were also designed to help Indonesia prepare a competitive and transparent tender for public-private partnership transactions and significantly reduce garbage disposals in big and small cities.
The chief economist of the World Bank Indonesia, William E Wallace, said that the US$950 million loans which would be paid in 24,5 years were expected to support the government's program of giving economic encouragement.
"The US$ 950 million funds can be directly put into the State Budget (APBN) and the government can distribute it to the investment sector," he said.
According to Wallace, the Indonesian government would enhance its expenditure distribution to support the economic stimulus.
"In the first semester, the government is apparently ready to increase its expenditure distribution to support the economy and anticipate the impact of the global financial crisis," he said.
The stimulus, Wallace said, could at least increase foreign exchange reserves though not having a significant impact on the rupiah.
"I assume that the impact will be very small. However, it will be considered as an addition to Indonesia's liquidity and foreign exchange reservea," he explained.
