Indonesia’s Economy Remains Robust, ADB President Says

President of the Asian Development Bank, Takehiko Nakao, accompanied by Indonesian Banker Sigit Pramono, answers questions from the journalists at Nusa Dua, Bali, Friday (12/10). Photo by: JAY/Public Relations Division of Cabinet Secretariat

Indonesia’s macroeconomic condition is very strong with more than 5% economic growth, higher than the 3% average of global economic growth, according to President of the Asian Development Bank (ADB) Takehiko Nakau.

“(The Indonesian Government) maintains stable macroeconomic conditions,” Takehiko said after a meeting with President Joko “Jokowi” Widodo on the sidelines of the IMF-World Bank Group Annual Meetings at Bali Nusa Dua Convention Center (BNDCC), Bali, Friday (12/10).

Takehiko added that the depreciation of rupiah did not show its fundamental value.

“(The Rupiah depreciation) was caused by a speculative sentiment, the effects of federal reserve policy, and some other macroeconomic problems,” Takehiko explained.

On that occasion, Takehiko said that during the meeting with President Jokowi, ADB offered US$ 1 billion loan for post-quake relief in Palu and Donggala. “The loan consists of US$ 500,000 budget support and US$ 500,000 project support for water, sanitation, electricity, bridges, schools and others,” Takehiko said.

The amount of the loan, according to Takehiko, can be raised to more than US$ 2 billion, although it needs the approval from the ADB board of directors. “We need approval from board of directors, but we want to quickly process this loan,” Takehiko concluded. (Tim Liputan IMF-World Bank Group/ES) (RI/EP/Naster)