Indonesia to Propose 4 Projects For AIIB Financing

Jakarta Globe, January 23, 2016

The government has listed four infrastructure projects to be proposed for $1 billion
 loan from Asia Infrastructure Investment Bank this year, a senior official said on
Friday. (Reuters Photo/Kim Kyung-Hoon)

Jakarta. The government has listed four infrastructure projects to submit this year for a $1 billion loan from the Asia Infrastructure Investment Bank, a senior official announced on Friday.

The government will request AIIB loans for highway construction in East and North Kalimantan, budgeted at a total of $250 million, along with another $292 million for expansion of the country's railway networks, according to Wismana Adi Subrata, Deputy for Development Financing at the Development Planning Agency (Bappenas).

Other projects include a potable water project estimated at $50 million, and a television station transmission upgrading project costing $411 million, Wismana added.

"We are still working on determining appropriate loan schemes from AIIB for each project," he explained.

The China-led AIIB began operations in its Beijing headquarters in January 16, and is expected to start disbursing loans during the second quarter of this year.

Based on its current capital capacity, the lender can reportedly manage loans of up to an annual $15 billion over the next six years.

Indonesia is a founding member of the AIIB, and is already committed to acquire $672 million of the lender's capital.