ADB MAKES US$1 BLN STANDBY LOAN COMMITMENT TO INDONESIA

Jakarta, Feb 16 (ANTARA) - The Asian Development Bank (ADB) has made a commitment to provide Indonesia with a standby loan of US$1 billion, Finance Minister Sri Mulyani Indrawati said.

"There is a US$1 billion standby loan commitment (of ADB) which Indonesia can use to cover its public expenditures and support its economy when its economic conditions are weakening," the minister said after a meeting with Asian Development Bank President Haruhiko Kuroda at the finance ministry building here on Monday.
She said the loan would be included in Indonesia's stimulus package programs which were now being discussed with the House of Representatives (DPR).
"With the ADB support, the financial source of the economic stimulus programs would be more secure. The Asian Development Bank together with the World Bank, Japan and Australia are holding an intensive discussion with Indonesia on efforts to help overcome the impact of the world's economic crisis," Minister Mulyani said.
She said that of the US$1 billion loan commitment, the ADB had confirmed US$500 million in standby loans while the remaining US$500 million would be discussed further in the coming ADB annual meeting in Bali.
"In the meantime, the government is also waiting for the DPR's approval for the program because the inclusion of the program will change the posture and structure of he 2009 state budget. It will be discussed on Tuesday and Wednesday," the finance minister said.
Sri Mulyani said that apart from the standby loans, the ADB also provided Indonesia with program and project loans worth US$750 million.
According to the finance minister, developing countries would be able to carry out economic stimulus programs effectively with the support of international financial institutions.
"So, the effectiveness of economic stimulus programs of developing countries would depend on the financial capacities of international financial institutions like ADB, African Development Bank, Islamic Development Banks and others," she said.