JAKARTA. The Ministry of National Development Planning (Bappenas) will ensure that infrastructure projects are offered to be funded by foreign loans.
These loans will be worth US$35 billion of the total value of the Foreign Loan/Grant Plan, also known as Blue Book 2015 to 2019, which amounts to US$38 billion.
"The loans will make up 92 percent of the total Foreign Loan/Grant Plan, which is some US$35 billion," Deputy of Finance Development of Bappenas Wismana Adi Suryabrata said here on Friday.
He explained that the infrastructure projects include development of dams, roads, and bridges, power generation, electricity transmission, drinking water supply, and waste management, as well as a few social projects.
While the Ministry of Public Works and Public Housing is handling 50 percent of the projects, the remaining projects are the responsibility of the Ministry of Transportation, Ministry of Energy and Mineral Resources, and several other technical ministries.
According to Suryabrata, the government is very selective about choosing projects that can be funded by foreign loans, in accordance with priorities that need certainty for financial sustainability.
The foreign loans are also considered for projects that involve major use of imported raw materials.
Suryabrata further noted that all projects funded by foreign loans will be started by 2016.
Once the Blue Book is released this year, the government will offer the proposals to foreign partners, which are both multilateral and bilateral agencies.
So far, three multilateral institutions---the World Bank, the Asian Development Bank, and the Islamic Development Bank---have offered to finance infrastructure projects in Indonesia.
The World Bank has offered the largest aid amounting to US$14 billion. "The second-largest offer was from the Asian Development Bank, while the Islamic Development Bank offered US$5 billion," Suryabrata pointed out.
In addition to these three multilateral financial institutions, loans may be offered by the Asian Infrastructure Investment Bank, as well.
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