Bank Indonesia (BI) reported the country' current account deficit (CAD) widened to US $8.4 billion or 3 percent of the gross domestic products (GDP) in the second quarter (2Q) of 2019 - Photo: Special

JAKARTA (TheInsiderStories) – The World Bank’ approved a US$49.6 million loan for Indonesia to finance the development of urban project through a better integrated planning and city management, said the multilateral agency on Wednesday (06/12).

At the same time, the Fund give loans Rp1.4 trillion ($97.90 million) for West Java to clean up the Citarum River, the longest and dirtiest river in the province, said the governor Ridwan Kamil.

Reportedly, Indonesia is among the largest contributors to urbanization globally. According to the United Nations’ estimates, Indonesia’ urban population increased by nearly 59 million people from 2010 to 2018, behind only China and India.

At present, 137 million people live in Indonesia’s cities or 54 percent of the population. The share of urban residents is expected to grow to 68 percent of the population by 2025.

Because of persistent gaps in infrastructure and inadequate attention to spatial prioritization of infrastructure investments, Indonesia has not fully benefitted from the positive effects of urbanization.

The project financed by this loan will benefit an estimated 12.5 million people living in 13 cities. Municipal agencies will also benefit from improved capacity for evidence driven urban planning and financial management as well as better integration of spatial and socio-economic development planning.

“Helping municipal governments integrate spatial planning with capital investment planning will help cities become drivers of prosperity for the country’s fast-growing urban population,” said Rudy Prawiradinata, Deputy for Regional Development at National Development Planning Agency in an official statement yesterday.

Rodrigo A. Chaves, World Bank Country Director for Indonesia and Timor-Leste added: “This project will cause more effective financing of infrastructure to make cities more livable and productive. This project will improve links between urban planning and infrastructure development to make the investments more efficient and reduce the vulnerability to climate-related hazards by directing development towards lower risk areas.”

While, Kamil said that the Citarum Harum program included efforts to address trash, sedimentation and flooding. The World Bank loan would be used specifically for addressing the trash problem. He stated has planned to use the loan to help change residents’ lifestyles to provide a long-term solution to the trash problem.

During the Annual Meeting of the International Monetary Fund (IMF) and the World Bank (WB) in Bali in Oct. 8 to 14, Indonesia said needed funds Indonesia will offer an investment opportunities of US$42.2 billion to develop several projects in the country.

There are 79 total projects to be offered from 21 State-Owned Enterprises (SOEs) with a total value around $80 billion. Coordinating Minister for Maritime Affairs (CMMA) Luhut Binsar Panjaitan, said the investment opportunities would be published in a book and is planned to be released in early October by SOEs ministry.

He also asserted that potential investors have to comply with four criteria namely environmentally friendly principle, upstream to downstream projects, involve local communities, and transfer technology.

Special Staff for the SOEs ministry Sahala Lumban Gaol added that several state companies were involved in the projects that would be offered, including power producecr PT Perusahaan Listrik Negara, toll operator PT Jasa Marga Tbk (IDX: JSMR), construction provider PT Waskita Karya Tbk (IDX: WSKT), and others.

Among them are several tourist sites in Banyuwangi, Bali, as well as Labuan Bajo in East Nusa Tenggara that have the potential to be visited by participants of the Annual Meeting’ visitors. 

Written by Staff Editor, Email: theinsiderstories@gmail.com