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dollars to Indonesia to revive its sluggish economy. The loan will
support Jakarta's multi-billion- dollar stimulus efforts that include
tax relief, capital spending and government handouts, the
Manila-based lender said in a statement. Without the stimulus
programme, the bank said Indonesian economic growth could weaken to
2-3 percent from its current pace of 4.3 percent. That was already
below its 5-6.3 percent average over the past four years. "With
exports, private investment, and consumption still sluggish, a strong
countercyclical fiscal stimulus is needed to protect the social
sectors and support poverty reduction," ADB official Arjun Thapan
said in the statement. "Indonesia has the fiscal space for its
stimulus package, which is expected to be temporary, and is also
taking measures for structural reforms to sustain growth over the
longer term." The loan matures in five years, with no repayments for
the first three.
