Japan increases Indonesian aid to some US$1.67b
Japan increases Indonesian aid to some US$1.67b
JAKARTA (JP): Japan, one of the biggest creditor members of
the Consultative Group for Indonesia (CGI), increased its aid
commitment to Indonesia, yesterday, to US$1.67 billion this
fiscal year from $1.44 billion last fiscal year.
"The new aid, which shows an increase of $230 million,
reflects our government's commitment to maintaining friendly
bilateral relations with Indonesia," a deputy to the Japanese
Ambassador to Indonesia, Minister Zenji Kaminaga, told reporters
here yesterday.
Kaminaga had a meeting with reporters at the embassy
immediately after the CGI closed its two-day third meeting in
Paris yesterday.
Kaminaga said the Japanese aid, which was pledged under the
World Bank-chaired CGI scheme, consisted of $1.5 billion in soft
loans provided by the Overseas Economic Cooperation Fund (OECF)
and $170 million in grants and technical assistance by the Japan
International Cooperation Agency (JICA).
He said that out of the OECF's $1.5 billion loans, $200
million will be distributed for sector loans to finance
Indonesian rural infrastructure development and another $200
million in fast-disbursing assistance aimed at tackling the
country's current account deficit.
He said the World Bank puts Indonesia's current account
deficit at $3.6 billion this fiscal year, as compared to the
$3.19 billion predicted by the Indonesian government.
According to Kaminaga, the fast-disbursing assistance, which
dropped from $300 million last year, is also aimed at financing
small scale projects on education, health, social welfare, human
resettlement, communication and water resources.
Kaminaga said that OECF's loans under the Overseas Development
Assistance (ODA) scheme focus on the improvement of
infrastructure and human resource development.
Projects
Japan's project loans would be extended for 20 projects
throughout the country, Kaminaga said.
The projects include water transmission construction in
Ujungpandang, South Sulawesi, small scale irrigation management
projects in West and East Nusa Tenggara, South Sulawesi and
Lampung, the construction of hydro-power plants in the Toba Lake
of North Sumatra and Aceh, and the construction of a steam coal-
fired power plant in Banjarmasin, South Kalimantan.
In the transport and telecommunication sectors, the OECF's aid
will cover the construction of the south-west arch road linking
Grogol and the Soekarno-Hatta International Airport in Jakarta,
double-track railway from Cikampek to Cirebon, development of the
Bali airport, an area traffic control (ATC) system in Jakarta,
extension and improvement of telecommunication networks in the
greater Jakarta area and telecommunication maintenance centers
throughout the country.
Kaminaga also said that, in terms of the environment, OECF has
expanded its aid for sewage development in Denpasar.
He said the terms of repayment for the OECF's loans are the
same as last year's, carrying an interest rate of 2.6 percent per
year with a maturity of 30 years and a grace period of 10 years.
Kaminaga also said that JICA's $170 million grant and
technical assistance are expected to develop Indonesian human
resources and to meet basic human needs, "in keeping with our
government's commitment to doing its utmost to assist Indonesia's
poverty alleviation program."
In addition to CGI's aid, Japan's Export-Import Bank will also
continue to expand its untied direct loans to Indonesia in
efforts to help finance various projects in the country, he said.
(fhp)