Program for Economic Resilience, Investment and Social Assistance in Indonesia

Projenin amacı

The main objective of the proposed operation is to enhance the Government’s crisis preparedness to address the potential adverse impact of ongoing volatility in financial markets on Government’s ability to meet its gross fiscal financing needs from markets. Learning the lessons from the crisis of 1997/98 and more recently 2008/09, the Government would like to ensure that essential public expenditures are maintained and, if necessary, augmented to provide economic stimulus during this period of stress. Therefore, as part of its proactive response to the current global situation, the Government would like to put in place arrangements that would boost the confidence of international and domestic financial markets to enable the Government to raise necessary resources from them. Thesearrangements include a set of confidence-boosting policy measures as well as back-up financing arrangements—a part of which is the proposed loan—that would be available in the event that the worsening of global financial markets prevents Indonesia from accessing financing at reasonable rates.

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