Japan mulls US$540m RI loans

Japan mulls US$540m RI loans

TOKYO (AFP): Japan is considering fresh loans worth US$540 million to Indonesia at a planned meeting of donor nations this week, Japan Broadcasting Corp. (NHK) said Sunday.

Indonesia will estimate its debt next year at $4.9 billion during the World Bank-backed meeting on Indonesia's economic reform, to be held in the Japanese capital on October 17 and 18, NHK said.

Jakarta will call on donor nations and international institutions to help make up for the debt, the national television network said.

Tokyo is now finalizing a plan to provide fresh loans worth 58 billion yen ($540 million) to Indonesia to help finance five projects designed to support the agriculture and other industries, NHK said.

Japan is currently Indonesia's largest donor nation and the Southeast Asian giant is one of the major recipients of Japanese overseas aid.

On Tuesday, Japanese Finance Minister Kiichi Miyazawa met Rizal Ramli, Indonesia's coordinating minister for the economy, in Tokyo and said his government was ready to announce fresh support for Indonesia at the donor nations' meeting.