The Board of Directors of the Asian Infrastructure Investment Bank (AIIB) have approved a USD $691.5 million dollar loan to the Indonesian government to fund infrastructure projects across the nation.
Expected to improve accessibility and help spur growth, the loan is expected to be divided as follows:
- USD $250 million to improve irrigation services and management accountability
- USD $125 million for a dam improvement project
- USD $216.5 million for a slum improvement project in 154 cities
- USD $100 million for regional infrastructure development, such as flood management and sanitation.
AIIB Director General of Investment Operations, Supee Teravaninthorn says, "The project is aligned with AIIB's mandate to promote social and economic development in Asia through investment in infrastructure."
To date, Indonesia has received 13 per cent of the AIIB's $5.34 billion total lending initiative, making the nation the second-largest recipient of funding from the AIIB following China.
According to the Committee for Acceleration of Priority Infrastructure Delivery (KPPIP), Indonesia still needs an additional $368.9 billion to support infrastructure development under the current administration.
AIIB Vice President and Chief Investment Officer D.J. Pandian said: "This project shows AIIB's commitment to support economic growth and socioeconomic development in Indonesia, the largest economy in Southeast Asia."
Source: Asian Infrastructure Investment Bank, Jakarta Globe
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