Japan provides $540m in addition to CGI aid pledge

Japan provides $540m in addition to CGI aid pledge

JAKARTA (JP): The Japanese government will provide
new yen loans for medium and long-term assistance amounting to
around 58.1 billion yen or equivalent to US$540 million on top of
its 171.6 billion yen ($1.58 billion) contribution to the $4.8
billion CGI loans.

Kouji Tsuruoka, the spokesman for the Japanese Embassy in
Jakarta, said on Wednesday that the additional loan would be
disbursed over several years to finance five "highly prioritized
and urgent projects."

"Most CGI donor countries have focused on short-term
assistance. We in Japan view the Indonesian economy as departing
from the crisis situation. Therefore Japan considers it necessary
to promote assistance for project-type aid on a long-term
perspective basis to ensure stability and promote further
development in Indonesia," he told a media conference.

He said that around 8.5 billion yen, equivalent to $79
million, would be disbursed in 2001 for the five projects.

Tsuruoka said the project loans were for the Batang Hari
irrigation project (7.64 billion yen), the water resource
development project (18.68 billion yen), rural areas
infrastructure development project (20.04 billion yen),
institutional and human resources development for IT-related
customs services improvement project (4.12 billion yen) and the
maritime education and training improvement project (7.67 billion
yen).

Tsuruoka added that the Japanese government would also provide
"grant assistance and technical cooperation" next year.

He said that the amount for next year had not yet been
decided, but the grant assistance and technical cooperation for
the current budget year was worth around 14 billion yen ($130
million).

Tsuruoka said that Japan, the biggest donor country to
Indonesia, "expressed its determination to extend as much support
as possible to assist Indonesia in her reform efforts ... despite
severe Japanese financial conditions."

"Furthermore, the government of Japan called on the government
of Indonesia to promote economic structural reforms, to formulate
poverty alleviation strategies, to promote democratic and fair
and good governance, and to implement projects in an effective
and transparent manner," he added.

The Consultative Group for Indonesia (CGI), meeting in Tokyo
and chaired by the World Bank, pledged an expected $4.8 billion
in aid for 2001 and said it would add $530 million in technical
assistance grants.

The CGI comprises 21 countries and 13 institutions, including
Japan, the United States, the World Bank and the Asian
Development Bank. (rei)