JAKARTA, March 14 The World Bank and the Asian
Infrastructure Investment Bank (AIIB) will provide a state-owned
Indonesian infrastructure financing firm with loans worth $200
million for regional development, the World Bank said on
PT Sarana Multi Infrastruktur (SMI) will receive $100
million from the Washington-based lender under its Regional
Infrastructure Development Fund (RDIF), the bank said, adding
that the Beijing-based AIIB will provide an additional $100
million in co-financing.
The funds will boost access to credit to finance
infrastructure projects, such as housing, transportation, health
facilities and schools.
"Currently, the financing instruments available in Indonesia
for local-level infrastructure investments are limited," said
Marcus Lee, senior urban economist at the World Bank.
"The RDIF will address the gap for medium- to long-term
infrastructure financing, particularly in urban areas across the
This is the third co-financing arrangement in Indonesia
between the World Bank and the AIIB. Last month, the World Bank
approved a $125 million loan to upgrade more than 140 dams
throughout the country.
In July 2016, the World Bank extended financing of $216.5
million to support the National Slum Upgrading Program, which
aims to improve infrastructure in Indonesia's slum areas.
(Reporting by Gayatri Suroyo; Editing by Randy Fabi)