A projected US$20 million in funds will be distributed in 2013.Jakarta (ANTARA News) - The government expects US$600 million in funds under the Millennium Challenge Corporation (MCC) program can be gradually disbursed to reduce poverty rates beginning in 2013, an official said.
"We are in the process of making preparations for the implementation of the MCC program. The program will be signed in September or October 2012 and the funds, worth US$600 million, will be gradually disbursed starting in January 2013," Deputy Minister of National Development Planning Lukita Dinarsyah said in a statement on Saturday.
A projected US$20 million in funds will be distributed in 2013.
In the initial stage of the program, US$12 million in extra funds will be made available to carry out a study of social issues related to the implementation of the projects funded by the MCC-Compact program, he said.
"So the total value of MCC grants disbursed in 2013 will reach US$32 million, including the US$12 million in extra funds. If the funds are to be used to build roads, there must be an environmental impact analysis and social study," he said.
He noted that one of the challenges to implement the MCC program is educating the public.
It takes one or two years to educate the public before MCC-funded projects are started, he added.
Citing an example, he said one of the requirements to build an MCC-funded hydro power plant is preparing local residents to understand and manage the plant.
The Indonesian government is expected to receive grants worth US$600 million from the US government under the MCC program to reduce poverty rates through economic growth.
Indonesian Finance Minister Agus Martowardojo signed the grant with US Secretary of State Hillary Clinton on the sidelines of the ASEAN Summit held in Bali on November 19, 2012.
The program consists of modernization of procurement procedures, child nutrition improvements and developing a green economy. Half of the funds will be used to finance the three programs.
(Uu.S012/INE/KR-BSR/F001)
Editor: Priyambodo RH
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