ADB approves $115 mil. in loans to Indonesia

Asian Economic News, Oct 23, 2000

MANILA, Oct. 20 Kyodo

The Asian Development Bank (ADB) said Friday it has approved two loans amounting to $115 million to develop micro-enterprises and small businesses in Indonesia.

''It will increase incomes of the poor by developing micro-enterprises and small businesses in the rural areas,'' said the Manila-based bank, adding that about 750 community-based mini-savings and loan organizations will be formed and trained under the project.

''More than one million Indonesians will benefit from the rural development project in an effort to reduce poverty through community empowerment,'' the ADB said.

According to a statement issued by the bank, credit will be made accessible at market rates through six regional development banks while rural infrastructure development will link villages to markets in urban centers.

It said the project will focus on six provinces in less-developed Kalimantan and Sulawesi.

''About 20 more provinces that show commitment on a voluntary basis will conduct their own capacity-building training programs after a successful midterm evaluation of the project,'' the bank said.

''The project will prepare communities for the impending decentralization and provide hands-on training through activities such as constructing small civil works.

It will also prepare communities and local governments, which will be in the forefront of planning and implementing the project activities,'' the bank said.

More than 185,000 jobs are expected to be generated by the project and increase the incomes of about 425,000 Indonesians.

It said approximately 4,500 community leaders will be trained to support the decentralization process. In addition, it said about 1,770 local government workers will receive formal training for diplomas and bachelor and postgraduate degrees, locally and abroad.

The bank said women will make up at least half the participants in community and micro-enterprise training.