Japan provides $170m in aid for Indonesia

JAKARTA (JP): Japan and Indonesia yesterday closed a two-day annual consultation on technical cooperation and grant assistance, totaling US$170 million, to be implemented this fiscal year.

The record of discussion was signed yesterday by S. Kitajima, Director of the Aid Policy Division at the Japanese Foreign Ministry, and Wisber Loeis, Indonesian Director General of Foreign Economic Relations.

When asked about the projects to be financed by the grants, Loeis and Kitajima said that the projects were subject to the approval of a number of Indonesian ministries.

"In fact, we agree with Indonesian authorities, but it is still subject to cabinet approval. We'll also have to implement some preliminary studies," Kitajima said.

Kitajima, who led the Japanese delegation in the discussion, noted that the grant assistance would emphasize Indonesian economic development, covering the fields of poverty alleviation, human resources development, education, environment and infrastructure.

Informed sources from the National Development Planning Board (Bappenas) told The Jakarta Post that the grant would most likely be used to finance on-going projects.

The ongoing projects include the construction of the Yogyakarta Sewage Treatment Plant, the establishment of the Center for Japanese Studies at the University of Indonesia, the construction of the New Emergency Unit at the Dr. Soetomo Hospital in Surabaya, the improvement of Training Equipment for South-South Cooperation and Vocational Training Equipment.

Last year, Japan conferred grant assistance of some 7.6 billion yen (US$ 76 million) to Indonesia for the improvement of social conditions, medical and sanitary conditions and the quality of the water supply. (rid)