Japan provides new $158 million loan to Jakarta
Japan provides new $158 million loan to Jakarta
JAKARTA (JP): The Japanese government has agreed to provide a
20 billion (US$158 million) quick disbursement loan to support
Indonesia's human resource development.
The new loan, in the form of a sector program loan, was handed
over yesterday by Japanese Ambassador Takao Kawakami to Director
General for Foreign Economic Relations Soemadi D.M.
Brotodiningrat.
The loan supplements a 195.2 billion ($1.5 billion) overseas
development assistance package announced by Japan during the
Consultative Group for Indonesia's (CGI) sixth meeting last June
in Tokyo.
Kawakami said part of the new loan would be used to finance
small projects for education and human resources development
training, social welfare and health care.
The loan is payable in 30 years, including a grace period of
10 years, with an interest rate of 2.2 percent a year.
The ambassador said the Japanese government decided to issue
the quick disbursing loan in consideration of Indonesia's efforts
to promote structural adjustments while experiencing
unprecedented economic difficulties.
Indonesia is suffering its worst economic crisis in decades.
Soemadi said the loan would be used to help improve the
country's economic structural adjustments.
He added that human resources would be given priority, while
poverty eradication and health improvements followed closely in
importance.
Japanese Vice Foreign Affairs Minister Masahiko Koumura
promised President Soeharto in January that his government would
provide a 50 billion fast disbursement loan for the 1998/1999
fiscal year to help fund labor-intensive projects.
Japan is the largest single creditor to Indonesia. For the
1997/1998 fiscal year, Japan pledged 215.2 billion in new soft
loans through the CGI creditor consortium to Indonesia, despite
its plan to slash its official development assistance (ODA)
worldwide by 10 percent.
Indonesia received 190.1 billion in Japanese ODA loans in
1996/1997 and 170.1 billion in 1995/1996.
The embassy said the 20 billion loan is a part of Japan's
recently announced economic aid package for Indonesia.
Japan is also participating in an International Monetary Fund-
led rescue package for Indonesia worth $43 billion. (gis)
Table: Japan's ODA for Indonesia as of March 3 (in billions of yen)
(Fiscal Year; Yen Loan; Aid Grant; Technical; Cooperation):
(1995/1996; 170.1; 6.7; 12.0),
(1996/1997; 190.1; 7.2; 11.5),
(1997/1998; 215.2; 7.9; Not available).