ADB provides US$500m loan to support Indonesia’s key reforms

by BERNAMA / pic credit:

JAKARTA – The Asian Development Bank (ADB) has approved a US$500 million (US1=RM4.19) policy-based loan to help Indonesia improve human capital, increase labour productivity and implement reforms in education, skills development, health as well as social protection.

The programme would support key reforms to help the government reach the health and education targets of the United Nations’ Sustainable Development Goals, said its director of human and social development for Southeast Asia, Ayako Inagaki.

It would also enhance education and skills training, boost employment among youth including university graduates, expand the social safety net and reduce childhood stunting, she said in a statement.

ADB pointed out that human development was identified as a key driver of economic growth in Indonesia’s Vision 2045 and National Medium-Term Development Plan, 2020-2024.

Hence, Indonesia needs an annual growth rate of at least seven per cent to realise its aspiration to become a high-income country by 2045.

However, the COVID-19 pandemic has had a negative impact on learning outcomes due to extended school closures, which could have a lasting impact on young children.

By addressing the human capital deficit, the programme would help boost Indonesia’s recovery from the global pandemic, the bank explained.