Indonesia Nets ADB Loan for Roads In Kalimantan and Southern Java
The Asian Development Bank approved on Friday a 25-year, $180 million loan for Indonesia to help it improve a 470-kilometer-long road in northern Kalimantan and parts of the busy road network in southern Java.
ADB said the Islamic Development Bank would provide the equivalent of $65 million in co-financing for the project, and the Indonesian government would contribute $135.5 million. Work is expected to be completed by February 2016.
For northern Kalimantan, the road will also help link the region to Malaysian Borneo.
“The upgrades along these vital routes will open up access to markets, investments, job opportunities and social services for many poor communities, which is essential for equitable development across the country,” James Lynch, ADB’s director of transportation for Southeast Asia, said in a statement on Friday.
The project will cover parts of the nation’s biggest road network in southern Java, and roads in remote districts in northern Kalimantan, according to ADB.
All told, the government expects construction of the roads as part of the Regional Roads Development Project to cost about $380.5 million.
Manila-based ADB, whose main mission is to promote development in the region, has provided loans to Indonesia over the past decade in large part to improve infrastructure.
Poor infrastructure has been blamed for high distribution costs in the shipment of goods and products across the nation’s 118,000 islands.
Links from Kalimantan to the border with Malaysia will also be improved, supporting the Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area.
This is an ADB-backed initiative to develop two land-based transportation corridors to boost regional connectivity, cut transportation costs and spur economic growth.