To finance priority programs and projects in the 2013 State Budget (RAPBN), the government plans to take foreign loans amounting to Rp39.4 trillion.
"Since the need for debt financing exceeds the capacity of domestic funding sources, the government will utilize foreign loans as a complementary funding source for development," said Minister of Finance Agus Martowardojo in Jakarta yesterday.
Strategic Loan Utilization
Agus explained that the selection of loan sources considers factors such as:
- Favorable terms and conditions for the government
- Technology transfer and expertise from lenders
The priority sectors for these loans include infrastructure projects, such as:
- Power plants
- Roads and bridges
- Ports
- Procurement of military and police equipment (Alutsista) not yet produced domestically
"The foreign loan agreements must also be free from political agendas," he emphasized.
Breakdown of Rp39.4 Trillion Loan Allocation
- Rp29.2 trillion for priority programs in ministries and government agencies
- Rp3.2 trillion for sustainable grants to regional governments
- Rp6.9 trillion for on-lending to regional governments and state-owned enterprises (BUMN)
Key Projects Financed by Foreign Loans
Some priority projects funded by foreign loans include:
- Rehabilitation of Tanjung Priok Port
- Double-track railway development
- Jakarta MRT public transportation project (funded by Japan)
- Oceanographic infrastructure (funded by France)
- Farmer empowerment through information technology (funded by the World Bank)
- Road development in Eastern Indonesia (funded by Australia)
- Jatigede Dam construction (funded by Australia)
- Citarum Dam construction (funded by the Asian Development Bank - ADB)
- Belawan Port development (funded by the Islamic Development Bank - IDB)
Loan Agreement Status
Of the Rp39.4 trillion planned loan disbursement,
- Rp20.4 trillion covers multi-year projects, with agreements already signed and effective until August 2012.
- The remaining Rp18.97 trillion consists of:
- Rp15 trillion in new loans that became effective after August 2012.
- Rp3.9 trillion in loans still under negotiation.
These loans are critical to supporting national infrastructure development and ensuring the successful implementation of key projects in 2013 and beyond.