JBIC provides $375m loan for RI rural projects
JBIC provides $375m loan for RI rural projects
JAKARTA (JP): The Japan Bank for International Cooperation
(JBIC) signed on Thursday a 46.35 billion yen (US$375.5 million)
loan agreement with the Indonesian government to finance several
rural projects in Sumatra, Java and Kalimantan.
The agreement was signed by the Ministry of Finance's Director
General of the Budget Anshari Ritonga and JBIC's chief
representative in Jakarta Nobuo Hazeyama.
JBIC said in a statement that some 7.64 billion yen of the
soft loan would be used to finance the Second Batang Hari
Irrigation Project in West Sumatra and Jambi provinces, and 18.68
billion yen would be allocated to the Second Water Resources
Development Project in West Sumatra, Java and Kalimantan.
Both projects are aimed at boosting food production in the
regions, according to the statement.
The remaining 20.04 billion yen has been allocated to the
Third Rural Areas Infrastructure Development Project, designed to
improve basic infrastructure such as roads, bridges and
sanitation facilities in rural areas. The bank did not specify
the areas targeted for this project.
It said the three projects were an extension of previous
projects it had also financed.
"The three loans are provided for projects that will
contribute to laying foundations for the medium and long-term
development of Indonesia, thus helping the country to achieve
sustainable growth," JBIC said.
The loans will be provided in the form of "goods and services"
and "consultancy services".
Goods and services carry an interest rate of 1.80 percent,
with a repayment period of 30 years and a grace period of 10
years.
Consulting services carry an interest rate of 0.75 percent and
should be repaid in 40 years with a grace period of 10 years, the
bank said.
JBIC said the National Development Planning Board (Bappenas)
would be responsible for the projects.
The Second Batang Hari Irrigation Project would be jointly
executed by the Ministry of Resettlement and Infrastructure and
the Ministry of Agriculture, while the Second Water Resources
Development Project would be overseen by the Ministry of
Resettlement and Infrastructure, the bank said.
The Third Rural Areas Infrastructure Project would be jointly
executed by the Ministry of Resettlement and Infrastructure and
the Ministry of Home Affairs and Regional Autonomy.(05)