JAKARTA, Sept. 6 (Xinhua) -- Many foreign-funded development projects have not commenced due to the delay in the disbursement of loans, the Jakarta Post quoted an official as saying on Monday.
"There are 42 loan packages pledged by foreign donors that have not been disbursed," the Finance Ministry's Debt Management Director General Rahmat Walujanto said .
The Finance Ministry says only about 5 billion U.S. dollars (40. 4 percent) of the 12.56 billion dollars in project-based loans pledged for 185 projects had been disbursed.
Meanwhile, he said, only 1.63 billion dollars or 30.93 percent of the total 5.3 billion dollars of foreign loans under the sub- loan agreement (SLA) had been disbursed.
The undisbursed loans include credit facilities for defense equipment procurements .
Rahmat blamed three factors for the delay, namely delayed approval of projects, protracted procurement process, and a delay in lender's approval.