Jakarta (ANTARA News) - Finance Minister Agus Martowardojo said Indonesia would chair the board of directors of the ASEAN Infrastructure Fund jointly with Malaysia.

"Indonesia will lead the board in the first year and Malaysia in the second. Indonesia will again chair the board for the next two years, followed by Malaysia in the subsequent two years," he said here on Tuesday.

Agus said he hoped that with the recent development, infrastructure projects planned by the government could immediately begin.

"The number of projects that have been submitted to the AIF from Indonesia is quite big. We hope to get adequate funding from the AIF," he added.

Agus, however, stated that the decision regarding which project would receive a guarantee of funding from the AIF would be in the hands of the board of supervisors, while the disbursement of funds would be done by the Asian Development Bank.

"The board of directors is like the commissioners. It is the ADB that carries out everything. Preparations and ensuring neutrality are within ADB�s purview, but proposals are given to the board of directors which will make the decision," he said.

The 10-member Association of Southeast Asian Nations has agreed to launch a US$485 million fund � for road, railway, electricity, and water projects, as well as other infrastructure projects � at the 45th meeting of the ADB in Manila, the Philippines, during May 2-5.

The biggest contributor to the fund will be ADB and Malaysia, each contributing US$150 million, while Indonesia will give US$120 million and the rest will come from other ASEAN members.

The board of supervisors is also tasked with providing technical advice (such as on the implementation of funding) and its headquarters will be in Malaysia.

Based on projections AIF will participate in six projects a year, with a minimum guarantee of US$75 million per project. Projects entitled to AIF guarantee are those that are aimed at reducing poverty, increasing trade, and boosting investment.


Editor: Suryanto
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