RI seeks $2b from Japan to develop cyber city<\/p>\n
JAKARTA (JP): Indonesia expects to obtain about US$2 billion
\nfrom Japan's special IT development fund to establish a \"cyber
\ncity\" at the Jakarta Fairground in Kemayoran, Central Jakarta,
\nthe developer said here on Monday.<\/p>\n
PT Cyber City Indonesia (CCI) president Edward S. Soeryadjaya
\nsaid the money would be used to develop an international standard
\ncyber city at the former Kemayoran international airport, which
\nwould resemble cyber ports in the United States, Hong Kong and
\nMalaysia.<\/p>\n
\"The IT development we have here now is sporadic in its
\ngrowth. We would like it to be centralized in a place that has
\ninternational standard infrastructure,\" he said during a media
\nconference.<\/p>\n
PT Jakarta International Trade Fair (JITF), the operator of
\nthe Jakarta Fairground and founder of CCI, has allocated at least
\n10 hectares of its 44 hectares of land at the former airport to
\ndevelop the cyber city, Edward said.<\/p>\n
He said only three hectares would be developed for the first
\nfew years.<\/p>\n
Edward said CCI would begin by refurbishing JITF's main
\nbuilding, bringing it up to international multimedia standards
\nwith facilities like fiber optics for high-speed data, voice and
\ngraphic transmissions.<\/p>\n
The refurbishment will cost $7 million, he said, adding that
\nhe hoped other investors would provide additional funds to back
\nthe Japanese loan.<\/p>\n
Japan pledged $15 billion for information and technology
\nprojects in developing countries during the Group of Eight (G-8)
\nsummit in July on the island of Okinawa in Japan.<\/p>\n
One of the agreements reached at the summit was to narrow the
\ngap between rich and poor countries by fostering the spread of
\ncomputer and telecommunications technology.<\/p>\n
Edward said $5 billion of Japan's IT fund had been allocated
\nfor member countries of the Association of Southeast Asian
\nNations (ASEAN), and that Indonesia could receive at least $2
\nbillion of this total.<\/p>\n
JITF vice president director Yoichi Sato said the money would
\nbe in the form of a special yen loan, which would carry an annual
\ninterest rate of between 3.5 percent and 4 percent per annum and
\na maturity of between 25 years and 30 years, including a five-
\nyear grace period.<\/p>\n
Roesdiman Soegiarso, JITF development director, said operating
\na cyber city may be the only way for the company to turn a
\nprofit.<\/p>\n
JITF was given in 1990 a $100 million loan from the Jakarta
\nDevelopment Corporation (JDC), a consortium of Japan's private
\nsector and government, to develop 44 hectares of land at the
\nformer Kemayoran airport as a major exhibition ground.<\/p>\n
The plan has not been successful due to fierce competition
\nfrom the Jakarta Hilton Convention Center, which is more
\nstrategically placed in the business district, Edward said.<\/p>\n
The general manager of planning and finance at JDC, Satoshi
\nShigiya, said JITF twice rescheduled the first installment of its
\nloan payment, and the next payment was due in 2004.<\/p>\n
\"It would be very embarrassing for Indonesia if JITF had to
\nreschedule the installment once again,\" Abdul Muis, a member of
\nthe board overseeing the development of the Kemayoran complex,
\nsaid. (tnt)<\/p>",
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