ADB lends another $200m to RI

The Jakarta Post, Wed, 12/17/2008 11:12 AM  

The Asian Development Bank (ADB) is providing more loans to Indonesia, including the latest loan of US$200 million to support efforts to sustain economic growth and reduce poverty. 

In a statement on Tuesday, the ADB said its loan for the Fourth Development Policy Support Program would help the government advance reforms to strengthen its finances, improve the investment climate and enhance public services for the poor. 

"Lagging human development indicators such as the high maternal mortality rate, malnutrition rate and low transition from primary to secondary school must be tackled by improving the quality of services," said Purnima Rajapakse, principal country specialist at ADB's Indonesia Resident Mission. 

The funds will supplement financing for another series of loans from the World Bank and the Japanese government that support the same policy reforms, according to the ADB. 

The cofinancing arrangement ensures that development funding from different agencies is harmonized with the government's own reform program. 

The ADB said it would continue to assist the government's reform program in areas that include removing regulatory uncertainty for investors, implementing the national single window for cargo clearances, reducing tax compliance costs, improving budget preparation and execution, lowering public procurement costs and strengthening the capacity of local governments. 

Recently, the agency has also provided $350 million in loans for reform programs, $500 million for cleaning up the nation's dirtiest rivers, $50 million for infrastructure and $225 million for audit sector reform.