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Asian Development Bank approves $200m loan for Indonesia

MANILA: The Asian Development Bank said on Thursday it approved a $200 million loan for Indonesia to restructure its industry sector and open up opportunities for small and medium enterprises.

The programme for the industry sector intends to overhaul the complex and burdensome procedures for licences and approvals for domestic and foreign investors.

"By simplifying the regulatory system and sweeping away the major remaining barriers to entry, the programme lowers business costs and offers firms an environment of opportunity and challenge and a chance to make decisions with a minimum of interference," said Jaseem Ahmed, ADB senior economist on the project.

"This is the best way to support (small and medium enterprises), which is a flexible sector that will play a big role in expanding employment opportunities for the poor."

The ADB loan will come from the bank's ordinary capital resources. Interest will be determined according to the pool-based variable lending system for U.S. dollar loans.

The loan will be repayable in 15 years, including a grace period of three years, the bank said.

The ADB will also provide Indonesia two technical assistance grants totalling $3.5 million in relation to the industry restructuring.-Reuters