Jakarta. The promising prospect of national economy has driven some international funding institutions to express their commitments to fund various development programs in Indonesia. Some international funding institutions even have made commitment to increase their financial aids.
One of the institutions, Asian Development Bank (ADB) has made commitment to fund various programs in Indonesia to boost economic growth and environmental sustainability. Head of ADB representatives to Indonesia Sona Shrestha said that ADB expects that the assistance will generate inclusive economic growth.
According to Shrestha, government may achieve the inclusive growth by using fundings from ADB to develop infrastructure and improve the management system in public sector.
ADB also sees to develop geothermal and natural gas energies, which are more environmental friendly. The target is in line with the objective to realize economic growth with environmental sustainability.
However, ADB did not explain the size of investment commitment for Indonesia in 2017. As an information, in the beginning of 2016, ADB had onced announced to be ready to channel a worth of Rp 135 trillion of investment to Indonesia during the next five years.
In 2015, ADB channeled a worth of US$ 27.2 billion of aid to Indonesia. About US$ 10.7 billion of this number was under co-financing scheme.
Another donor institution Japan Bank for International Cooperation (JBIC) also made commitment to provide financial assistance to Indonesia, mainly in funding infrastructure, transportation, and energy sectors.
The Japanese-based financial institution also claimed to be the important financial institution for Indonesia, on the grounds that the investment values of JBIC continue to increase. In 2016, JBIC has channeled US$ 3.7 billion of funds to various projects in Indonesia.
Attractive scheme
During the last five years, JBIC had channeled US$1 billion-US$2 billion of funds per a year. In the future, JBIC will provide unsecured loans to Indonesian government.
Head of Fiscal Policy Agency Suahasil Nazara said that, government has always explained about development plans, mainly strategic projects in 2017 during meetings with international institutions.
According to Suahasil, aside of strategic projects, government also offered attractive loan scheme to investors.
Central government eyes for Rp 24.92 trillion of foreign loans, or 20% lower than Rp 31.35 trillion in 2016.
As much as Rp 23.9 trillion of the targeted loans will be allocated for programs in ministries/institutions, while the other Rp 1.01 trillion will be allocated to state owned enterprises (SOEs) and other institutions.
(MUHAMMAD FARID/Translator)
