Indonesia Gets US$350 Million Loan From The World Bank, What For?

Photo Illustration ANTARA

JAKARTA - The Director of the World Bank for Indonesia and Timor-Leste Satu Kahkonen said the US$350 million loan that was granted on 29 June 2022 will support the promotion and protection of human capital development in Indonesia.

This will support the Indonesian government's efforts to protect people when they lose income, improve access to health services, prevent unhealthy behavior, and increase the effectiveness of government spending.

"This program is the first World Bank support for human capital development policies in the East Asia and Pacific region. This support is an acknowledgment of Indonesia's strong commitment to the progress of its human capital development," Satu said as quoted by Antara, Tuesday, July 5.

This new financing is in line with the World Bank's Country Partnership Framework (CPF) for Indonesia for 2021-2025, particularly in fostering human capital through strengthening quality, equitable nutrition, health, and social protection.

In this way, World Bank financing will support the Government of Indonesia's policies to improve nutrition for pregnant women and reduce stunting in children, reform the delivery of services related to tuberculosis, and use telemedicine services to improve access to health in rural and remote areas.

One added, this support will also assist the government in taxation to prevent smoking and tobacco use behavior for the sake of long-term health, to introduce job loss insurance with cash benefits, training, and job search support to help workers and their families during economic shocks and natural disasters. .

"This activity supports a series of reforms that will help achieve the full potential of the Indonesian people," he said.

The Coordinating Ministry for Human Development and Culture (Kemenko PMK) will be the implementing agency for the World Bank's financing.

"Indonesia is facing globalization and there is no choice but to increase human capital competitiveness. The nation that will survive, win, and succeed in this era is a nation that is knowledgeable and skilled, has knowledge and expertise, and has strong character," said Coordinating Minister for Human Development and Culture Muhadjir Effendy .