KfW provides PELNI with boat loan

KfW provides PELNI with boat loan

JAKARTA: The Indonesian government and German financing firm
Kreditanstalt fuer Wiederaufbau (KfW) signed an 81.8 million
euros (approximately US$72 million) loan agreement on Friday to
allow the government to buy a 3000-passenger boat.

The agreement was signed by the ministry of finance and
officials from KfW.

The KfW said in a statement that the soft loan was provided
both by it and the German federal ministry of economic
cooperation and development.

The soft loan would have an average composite interest rate of
not more than 1.8 percent per annum, it said.

The project was aimed at improving sea traffic links between
Sumatra/Java and the eastern part of Indonesia, especially
Sulawesi and Papua, it said, adding that the ship would be
operated by state shipping company PT PELNI. -- JP