Indonesia gets $1.7b in loans from Japan

Indonesia gets $1.7b in loans from Japan

JAKARTA (JP): Indonesia and Japan yesterday signed diplomatic notes on Japan's Official Development Assistance (ODA) loans, totaling 170.1 billion yen (US$1.7 billion).

The amount constitutes the main portion of the total ODA loans for Indonesia amounting to 187 billion yen pledged by Japan at the fourth conference of the Consultative Group for Indonesia in Paris last July.

Minister of Foreign Affairs Ali Alatas and Japanese Ambassador to Indonesia Taizo Watanabe signed the diplomatic notes here yesterday.

The loan agreements were also signed in Tokyo yesterday by Akira Nishigaki, chairman of the board of Japan's Overseas Economic Cooperation Fund, and Wisber Loeis, Indonesian ambassador to Japan.

The documents signed yesterday contain 152.8 billion yen project loans and 17.3 billion yen sector program loans.

The project loans are for the construction of secondary school buildings, agricultural development, the improvement of infrastructure, the conservation of environment and human resource development.

The sector program loans are to finance small-scale projects in the field of education, health and social welfare, especially in remote areas.

Watanabe said yesterday that his government wanted to help the Indonesian government in promoting its development and eradicating poverty, especially in the eastern part of the country.

"I really feel that what is most needed in this country at this moment is to promote education, more job opportunities and upgrading the level of hygiene," Watanabe said. (mds/rid)