Japan pledges loan for suspended projects<\/p>\n
Ainur R Sophiaan and Moch. N. Kurniawan, The Jakarta Post,
\nSurabaya\/Jakarta<\/p>\n
The Japanese government has promised to provide a US$1.3
\nbillion loan to revive several large projects in Java that were
\nsuspended several years ago due to the economic crisis.<\/p>\n
Governor of East Java Imam Utomo told reporters in Surabaya on
\nWednesday that the money would be used to finance the development
\nof Tanjung Jati B, a huge coal-fired power plant in Jepara,
\nCentral Java, and a petrochemical center in Tuban, East Java,
\nowned by PT Trans Pacific Petrochemical Indotama (TPPI).<\/p>\n
The governor said he was informed of the loan from
\nCoordinating Minister of the Economy Dorodjatun Kuntjoro-Jakti in
\na meeting last week.<\/p>\n
\"The loan is expected to be disbursed in June and September,\"
\nImam quoted Dorodjatun as saying.<\/p>\n
The projects were among many that were suspended by the
\ngovernment in late 1997 as part of retrenchment efforts to cope
\nwith the mid-1997 monetary crisis.<\/p>\n
Today, as the economic situation has been easing, the
\ngovernment is seeking to resume some of the projects to meet
\ngrowing demand.<\/p>\n
Java and Bali are predicted to face a shortage of power in the
\nnext several years unless new power plants are built.<\/p>\n
The resumption of Tanjung Jati B, which has the power to
\ngenerate 1,320 megawatts (MW), is aimed at preventing power
\nshortages.<\/p>\n
TPPI, which is partly owned by Japanese firms Nisho Iwai and
\nItochu, is expected to supply about 300 tons of fertilizer per
\nyear, about half of East Java's fertilizer demand.<\/p>\n
Separately, W.M.P Simandjuntak, president of state-owned gas
\ncompany PGN said his company and Japan Bank International
\nCorporation (JBIC) were finalizing talks on a special yen loan
\nequal to $413 million to be given to PGN to develop a gas
\npipeline connecting South Sumatra and West Java.<\/p>\n
He expected the Indonesian and Japanese governments would sign
\nthe loan agreement sometime in June or July.<\/p>\n
According to him, the loan commitment was expressed by the
\nJapanese government during a meeting with a delegation sent by
\nthe Indonesian government to Japan last month.<\/p>\n
According to him, PGN would use another $73 million from its
\nown resources to finance the $486 million pipeline project.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japan-pledges-loan-for-suspended-projects-1447893297",
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"sponsor": "Okusi Associates",
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