From Government of Indonesia

World Bank Loan for Reform Program

The World Bank has approved a loan package of $600 million to support Indonesian reforms, which it said were already bearing fruit.

The assistance comprises a $530 million loan and a concessional credit of $70 million, it said Wednesday in a statement, Agence France-Presse reported.

"Indonesia has shown strong commitment to restoring sound economic fundamentals," said Andrew Steer, the bank's country director for Indonesia.

"The challenge now is to encourage investment that will spur growth and create jobs to ensure the needs of the most vulnerable are being adequately addressed," he said.

The World Bank development program assistance is intended to help the government deepen reforms in macroeconomic stability and creditworthiness, public financial management and governance, the investment climate, and services for the poor.

World Bank economist William Wallace said the reforms had already produced results. "Growth is accelerating, the financial sector is diversifying, red tape that impedes businesses is being cut, credit ratings are improving and infrastructure projects are getting underway," Wallace said.
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