MANILA ~ The Asian Development Bank (ADB) is to provide $4 billion in loans and grants to Indonesia over the next four years under a new assistance strategy.
The funds will go to support that country’s economic reform program as well as its efforts to reduce poverty, the ADB added.
ADB assistance over the four-year period will be focused on infrastructure development, improving the financial sector, supporting decentralization, achieving social welfare goals and environmental protection.
The four-year plan proposes $3.82 billion in loans and about $47.6 million in grants, the ADB said in a statement from its headquarters in the Philippine capital.
“This strategy is designed to support the government’s efforts to address development constraints with realism and determination,” ADB vice president Lawrence Greenwood said.
He stressed that guarding against corruption would be a key focus in all the loans and grants.
Indonesia’s economic growth was slowed by the 1997 Asian financial crisis that forced the government to focus on debt reduction and cut spending on economic and social development.
The government’s Medium-Term Development Plan, which the ADB supports, seeks to address these problems and increase the country’s economic growth, create jobs, and improve progress, the Manila-based multilateral institution said.