Sri Mulyani Supports ADB Mobilizing Resources To Support Vulnerable Small Countries

Minister of Finance, Sri Mulyani Indrawati. (Photo: Doc. Antara)

JAKARTA - Indonesian Minister of Finance (Menkeu) Sri Mulyani Indrawati supports the Asian Development Bank (ADB) to continue mobilizing resources to support developing small island countries that are very vulnerable and countries that are vulnerable to conflict in Asia and the Pacific.

"We want to urge ADB to continue to provide support to our colleagues in the Pacific, especially small, developing island countries, which require very important and effective interventions, as well as countries vulnerable to conflict," Sri Mulyani said in Tbilisi, Georgia, quoted from Antara, Monday 6 May.

This was conveyed by Minister of Finance Sri Mulyani in the Business Session of the ADB Board of Governors which is part of the series of ADB's 57th Annual Meetings which will be held on May 2-5, 2024.

According to the Minister of Finance, ADB must consider mobilizing resources through joint financing and improving the South-South and Triangular Cooperation (KSST) programs.

In addition, the Minister of Finance said that Indonesia also wants to support ADB in providing consolidational resources and blended finance, especially for countries that are really in very specific need in the midst of a higher global interest rate situation for a long time.

At the annual ADB meeting, ADB and donors, including Indonesia, approved the addition of USD 5 billion for the 14th Asian Development Fund (ADF) and ADB's 8th Technical Assistance Special Fund (TASF).

ADF 14 prioritizes special assistance to small island developing countries that are particularly vulnerable to climate change, and to countries that are in vulnerable and impacted by conflict.

On the other hand, Minister of Finance Sri Mulyani highlighted that in the 2022 and 2023 ADB profit losses reports, there was a significant increase in loan costs by more than 2.7 times as well as revenue from projects and treasury.

"So this is a very extraordinary fiscal two year, which may not happen again in the future. Any revenue from ADB must be channeled back to member countries, especially for the most vulnerable groups," said Minister of Finance Sri Mulyani.