The Asian Development Bank (ADB) has approved a loan worth 500 million USD for Indonesia to continue its policy reforms to reduce barriers for investment and encourage more public-private partnerships (PPPs).
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Illustrative photo (Source:Internet) |
The loan, which is ADB’s second phase under the Stepping up Investments for Growth Acceleration Programme, will be complemented by co-financing worth 224.6 million USD from Germany’s KfW Bankengruppe.
KfW provided parallel financing of 245 million USD for the first stage of the programme.
Steven Tabor, ADB Country Director in Indonesia said the country has been taking significant steps to improve the investment environment including removing barriers to PPPs and stripping away regulatory red tape.
ADB also announced that the Indonesian Government’s reform programme would be implemented in three phases.
The first phase saw the setting of higher foreign equity ceilings in land transport, shipping and management of ports.
The second phase of reforms has taken further steps to ease restrictions on investment and streamline processes for starting and operating a business.
The third phase of the programme to be carried out from July 2016 to June 2018 will see further measures to expand reforms, improve ease-of-doing business, and strengthening PPPs./.