Germany offers RI $200 million in loans

Germany offers RI $200 million in loans

JAKARTA (JP): Indonesia and Germany signed here yesterday four loan agreements worth US$200 million to finance four projects in electricity, transportation and water supply in the islands of Java, Sumatra, Kalimantan, Sulawesi and Sumbawa.

The electricity projects -- 500 kilovolt Transmission Line Ungaran-Klaten and Diesel Power Stations DV -- will help the state-owned electricity company PLN improve its services, the German Embassy here said.

The Ungaran-Klaten network is aimed particularly at improving electricity services for the two central Java cities of Yogyakarta and Surakarta.

The diesel power station is expected to increase generating capacities for 12 towns in Nias island, off the western coast of Sumatra; Kalimantan; Sulawesi and Sumbawa.

The transportation project -- Material Packages for Small Passenger Vessels -- is designed to create transport capacities at affordable prices and strengthen cooperation between shipbuilders of the two countries.

The fourth project -- Water Supply Palembang -- will provide the southern Sumatra city of Palembang with safe drinking water.

With the signing of the four agreements, the cumulative total of aid provided by Germany to Indonesia has amounted to DM4.8 billion (US$6.72 billion).

Germany is also financing three biodiversity projects in Indonesia with aid of $15 million.

On the occasion of the UN-Biodiversity Conference in Jakarta, German Minister for Environment, Nature Conservation and Nuclear Safety Angela Merkel underlined Germany's interest in strengthening environmental relations with Indonesia and in intensifying its biodiversity engagement. (12)