Indonesia secures $5.5b standby loan from foreign lenders
JAKARTA, March 4 (Xinhua) -- Indonesia on Wednesday got 5.5 billion U.S.
dollars standby loan from international lenders, which can be used if the
country fails in obtaining funds from domestic and global market, Finance
Minister Sri Mulyani said Wednesday.
Of the total funds, the World Bank will contribute 2 billion U.S. dollars,
Japan 1.5 billion U.S. dollars, Australia 1 billion U.S. dollars and the Asian
Development Bank 1 billion U.S. dollars, the minister said.
"The loan facilities is an important precautionary step, which we have designed
to maintain the confidence of investors in overseas and domestic markets," she
said during the signing of the commitment at her office here.
Indonesia, the southeast Asia largest economy, has been raising funds by
selling debts to local and international markets as an effort to plug its
widening budget deficit in which most of it would be used to finance massive
infrastructure projects to create job and spur growth.
The government and the parliament have approved 73.3 trillion rupiah (some 6.1
billion U.S. dollars) fiscal stimulus package recently.
The country's budget deficit has been expanded to 2.6 percent of the GDP to
some 137 trillion rupiah (some 11.7 billion U.S. dollars) from previous target
of 2.5 percent of the GDP for this year, as an effort to cushion the impact of
the global recession.