Japan hands over $1.96 million loans<\/p>\n
JAKARTA (JP): Indonesia and Japan exchanged diplomatic notes
\nyesterday on Japan's overseas developmental assistance loans
\nworth 190.1 billion yen (US$1.96 million) to fund 23 development
\nprojects and one sectoral program loan.<\/p>\n
The notes were signed here yesterday by Indonesian Minister of
\nForeign Affairs Ali Alatas and Japanese Ambassador Taizo
\nWatanabe.<\/p>\n
The loans constitute the bulk of Japan's overseas
\ndevelopmental assistance commitment pledged at the fifth meeting
\nof the Consultative Group on Indonesia in Paris earlier this
\nyear.<\/p>\n
Japan had pledged to lend 206.6 billion yen to Indonesia for
\nthe 1996\/1997 fiscal year.<\/p>\n
Alatas said he was pleased that most of the funds were
\nallocated to the type of projects prioritized by the government,
\nparticularly those in rural areas and the eastern half of
\nIndonesia.<\/p>\n
\"It once again shows the good cooperation between the
\nIndonesian and the Japanese government,\" he said, adding that the
\naid comprised soft loans.<\/p>\n
Over 174 billion yen will be used to fund projects, many
\nfocusing on environmental protection, human resources
\ndevelopment, infrastructure and poverty alleviation.<\/p>\n
Six billion yen will be used for an irrigation project in
\nBatanghari, five billion yen for an irrigation project in Bili-
\nBili, 8.4 billion for the Sipansihaporas hydroelectric power
\nplant project, 16 billion yen for the New Padang (Ketaping)
\nairport construction project and 12.8 billion for the Surabaya
\nairport construction project.<\/p>\n
Other projects include 20.3 billion yen for pollution
\nabatement equipment, 2.2 billion for a project to improve the
\ndistrict health system in Sulawesi, six billion yen for railway
\ndouble tracking on the Java South line and 7.7 billion yen for
\nintegrated horticultural development in upland areas.<\/p>\n
Under the agreement, the loans mature in 30 years, including a
\n10-year grace period.<\/p>\n
There will be a 2.7 percent annual interest rate on the loans
\nto 19 projects on energy, education, infrastructure, agriculture,
\ntransportation and irrigation.<\/p>\n
The other four project loans will have annual interest rates
\nof 2.5 percent or 2.3 percent. The remaining 16 billion yen will
\nbe used as a sectoral program loan with a 2.7 percent annual
\ninterest rate. (mds)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japan-hands-over-196-million-loans-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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