ADB approves 500 million USD loan for Indonesia’s economic recovery

Tuesday, 2021-11-23 06:45:57
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A corner of Jakarta, Indonesia. (Photo: AFP/VNA)
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NDO/VNA - The Asian Development Bank (ADB) has approved a 500 million USD loan to help Indonesia recover its economy following COVID-19 pandemic.

Director of the ADB’s Human and Social Development for Southeast Asia Ayako Inagaki said on November 22 that the loan is expected to help Indonesia improve its human capital, increase labour productivity and carry out reforms in education, skills development, health as well as social protection.

The programme will also support key reforms to help the Government reach the health and education targets of the United Nations’ Sustainable Development Goals.

The new loan finances the first of three subprogrammes under the Boosting Productivity through Human Capital Development Programme. The programme combines policy-based loans with technical assistance and knowledge support. By focusing on health, education, and social protection, it aims to help Indonesia lift its human capital index to 59 percent in 2026.

An annual growth rate of at least 7 percent is needed for Indonesia to realise its aspiration to become a high-income country by 2045. A skilled workforce is key to Indonesia’s transition to high-tech manufacturing and higher value-added exports.