Indonesia Got USD 1 billion Stand-By Loan From WB

■ Indonesia Got USD 1 billion Stand-By Loan From WB

World Bank Board of Directors on Tuesday (3/3) had approve to provide USD 2 billion standby loan, with a deferred drawdown option, to Indonesia.

This loan will be use to fund Public Expenditure Support Facility (PESF) scheme which intended to help mitigate adverse economic and social impact of global financial crisis and assist to secure adequate access to budget financing for critical expenditure and required counter-cyclical fiscal policy.

Coordinating Minister for Economic Affairs Sri Mulyani Wednesday (4/3) said PESF scheme is an Indonesian government efforts to maintain confidence of domestic and international markets.

PESF aimed to ensure financial market stability and maintain the financial system, maintain public spending during the crisis, attract private investment and support export through investment climate reform.

Indonesian government intends to only exercise PESF under certain circumstances set out in its financing plan such as the event of renewed difficulties in accessing credit market as occured in the fourth quarter of 2008.

In addition to the World Bank, Japan, Australia and Asian Development Bank (ADB) also plans to provide standby loan for Indonesia with the overall value of USD 5.5 billion which will be valid for two years.