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Loan Proposal from Indonesia: Infrastructure

Written by Frank Pobutkiewicz

I'm the founder/Managing Director of the All-American Model UN Programs! If you have any questions, please email [email protected]. Happy MUNing!

December 16, 2019


Loan Proposal from Indonesia: Infrastructure

Indonesia: Country Overview

Location & Climate: Indonesia is a country located in Southeast Asia, in between the Indian and Pacific oceans. With just over 267 million people, Indonesia is the world’s 4th most populous country and 1st most populous Muslim majority nation. The government is a presidential, constitutional republic with an elected legislature located in the country’s capital of Jakarta. Since Indonesia is located near the equator, the climate is generally stable, with two distinct wet and dry seasons. The dry season falls between April and October and the wet season between November and March.

Government & Politics: Since 1999, Indonesia has held free multiparty elections, and no one party has managed to win a majority of seats in parliament. President Joko Widodo’s party, The Indonesian Democratic Party of Struggle, won the most votes in the most recent election. While Indonesia’s elections are free, there is still a massive amount of government corruption hindering progress inside the country. According to the NGO Transparency International, Indonesia’s government transparency score is 38/100 (with 0 being the worst).

Current Issues: alleviating poverty, improving education on local and national levels, combatting acts of terrorism, consolidating democracy and financial reforms, dealing with corruption and reforming bureaucratic structures, holding the military accountable for past human rights violations, addressing climate change, and dealing with repercussions from global warming. In 2005, Indonesia reached a historic peace agreement with armed separatists in Ache, which led to democratic elections in December 2006. Indonesia continues to face a low-intensity separatist movement in Papua

International Bank Funds Requested: 30,000,000USD
In-Country Funds Used: 15,000,000USD
Total Loan Amount: 45,000,000USD

Purpose: To revamp the infrastructure of Indonesia, including ports, railways and airports. As the economy expands, Indonesia must support that expansion by ensuring that there can be a smooth transport of goods and workers within the country. 

Rationale: “Indonesia expects to be able to repay the loans to the International Bank using the immense profits made by tolls and tariffs collected from the use of these roads, as well as the overall economic benefit of a strong national infrastructure”

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