World Bank approves US$400 mln loan to Indonesia

The World Bank said it will continue supporting the Indonesian government in a solid reform program which over the past 7 years has led to more investment, improved financial management and reduced poverty.
Jakarta (ANTARA News) - World Bank executive directors in Washington DC, Tuesday (Nov 22) approved the Eighth Development Policy Loan (DPL-8) in the amount of US$400 million to Indonesia, the World Bank said in a press statement.

The World Bank said it will continue supporting the Indonesian government in a solid reform program which over the past 7 years has led to more investment, improved financial management and reduced poverty.

By providing financial support to Indonesia`s state budget, loans under the DPL series aim to build on progress made in three priority reform areas. These are improving the investment climate; strengthening public financial management; and enhancing poverty alleviation and service delivery efforts.

"Over the past decade, Indonesia has made remarkable progress in terms of achieving macroeconomic and political stability. The positive outlook in the macroeconomic situation and policy framework, warrant continued support for Indonesia`s institutional reforms through this DPL series," Stefan Koeberle, the World Bank`s Country Director to Indonesia, said.

"The goals of the latest installment in the DPL series are closely aligned with Indonesia`s medium-term development priorities, as outlined in the Rencana Pembangunan Jangka Menengah Nasional 2010-14. The work itself will continue to be led by Indonesia," he added.

Indonesia`s main challenge right now is not so much the design of appropriate policies or the raising of financing, but rather strengthening the institutions in charge of implementing those policies in order to enhance their developmental impact.

The institutional focus of the DPL-8 cuts across the following priority reform areas: Investment climate, Public financial management, and Poverty reduction.(*)

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