Japan hands over $1.96 million loans
Japan hands over $1.96 million loans
JAKARTA (JP): Indonesia and Japan exchanged diplomatic notes
yesterday on Japan's overseas developmental assistance loans
worth 190.1 billion yen (US$1.96 million) to fund 23 development
projects and one sectoral program loan.
The notes were signed here yesterday by Indonesian Minister of
Foreign Affairs Ali Alatas and Japanese Ambassador Taizo
Watanabe.
The loans constitute the bulk of Japan's overseas
developmental assistance commitment pledged at the fifth meeting
of the Consultative Group on Indonesia in Paris earlier this
year.
Japan had pledged to lend 206.6 billion yen to Indonesia for
the 1996/1997 fiscal year.
Alatas said he was pleased that most of the funds were
allocated to the type of projects prioritized by the government,
particularly those in rural areas and the eastern half of
Indonesia.
"It once again shows the good cooperation between the
Indonesian and the Japanese government," he said, adding that the
aid comprised soft loans.
Over 174 billion yen will be used to fund projects, many
focusing on environmental protection, human resources
development, infrastructure and poverty alleviation.
Six billion yen will be used for an irrigation project in
Batanghari, five billion yen for an irrigation project in Bili-
Bili, 8.4 billion for the Sipansihaporas hydroelectric power
plant project, 16 billion yen for the New Padang (Ketaping)
airport construction project and 12.8 billion for the Surabaya
airport construction project.
Other projects include 20.3 billion yen for pollution
abatement equipment, 2.2 billion for a project to improve the
district health system in Sulawesi, six billion yen for railway
double tracking on the Java South line and 7.7 billion yen for
integrated horticultural development in upland areas.
Under the agreement, the loans mature in 30 years, including a
10-year grace period.
There will be a 2.7 percent annual interest rate on the loans
to 19 projects on energy, education, infrastructure, agriculture,
transportation and irrigation.
The other four project loans will have annual interest rates
of 2.5 percent or 2.3 percent. The remaining 16 billion yen will
be used as a sectoral program loan with a 2.7 percent annual
interest rate. (mds)