Indonesia to ask World Bank to disburse US$1.2 billion program loan

Indonesia will ask for the disbursement of a US$1.2 billion program loan by the World Bank to cover its revised 2008 state budget deficit which reaches Rp94.5 trillion or about 2.1 percent of its gross domestic product (GDP), a senior finance ministry official said. Director General for External Debts Management of the Finance Ministry, Rahmat Waluyanto, said here on Friday that the total loans the government would withdraw amounted to US$2.9 billion, of which US$1.1 billion would come from the Asian Development Bank (ADB) and US$500-600 million from the Japan Bank for International Cooperation (JBIC). "The international institutions have different capacities in providing their loans," Waluyanto said when asked about the composition of the loans. He said that some of the JBIC loans were provided with regard to Indonesia's effort to handle the climate change issue. (http://www.antara.co.id/en/arc/2008/4/18/ri-to-ask-wb-to-disburse-us12-billion-program-loan/