ADB Help Indonesia Improve Investment Climate

Jakarta (Antara Bali) - The Asian Development Bank (ADB) has approved a US$400 million loan program to help Indonesia improve its investment climate and attract domestic and foreign investors in support of long-term, sustainable growth.

"Indonesia needs to accelerate structural reforms in a bid to turn a broad-based economy, rather than a commodity-based one," ADB Public Management Economist Rabin Hattari said in a press statement released on Sunday.

Investments in all sectors of the economy are needed, requiring improved infrastructure and stronger governance, as well as measures to emanate jobs and revoke poverty, he said.

The initial phase of Stepping Up Investments for Growth Acceleration Program (SIGAP), is supporting various government policies to create more transparent and effective cost business climate, expanding infrastructure financing options and building fit and pure open buying process.

One of the concrete outputs of this effort is increasing foreign holding of connectivity project under public-private partnership (PPP) scheme and simplifying executive procedures for setting adult  new businesses, he said.

The program also supports government initiative to expand infrastructure financing options for regional governments and increase PPP framework to attract more private funds for infrastructure projects, he said.

Earlier, the ADB has supported the development of PPP and the second phase of this program will continue the effort through various reform plans, including allowing PPP to invest in the social sector. (WDY)