RI, China work on $507m projects
RI, China work on $507m projects
Rendi A. Witular, The Jakarta Post, Jakarta
The governments of Indonesia and China have agreed to jointly
work on infrastructure projects in Indonesia worth US$507 million
as a follow-up to the bilateral strategic partnership signed by
the two nations' presidents on Monday.
The two projects are the completion of the ongoing Suramadu
bridge linking Surabaya and Madura island in East Java worth $177
million and the construction of the $330 million Jatigede dam in
West Java.
"During the ministerial level meeting for the strategic
partnership, the Indonesian and Chinese governments agreed to
invest in infrastructure projects," Minister of Public Works
Djoko Kirmanto said at the State Palace on Tuesday.
Indonesia, the world's fourth most populated country, signed
an agreement on strategic partnership with the world's most
populated country, China, to help expand bilateral trade by 42
percent from $14 billion to some $20 billion over the next three
years.
Included in the agreement is the Memorandum of Understanding
(MOU) on infrastructure and natural resources cooperation.
For the initial phase, Djoko said, the Chinese involvement in
developing local infrastructure projects would be by providing
soft loans for the construction of the Suramadu bridge and the
Jatigede dam.
The Suramadu bridge, which is expected to become the country's
longest bridge, is currently being financed by the central
government and the East Java administration.
The 5,438-meter-long bridge is estimated to be completed by
2006, with the loan from China expected to be disbursed this
year. The bridge is primarily aimed at boosting the economy on
Madura island, which has been left largely untouched by
development.
"The loan from China was initially scheduled to be disbursed
last year. However, it was later postponed because the Indonesian
government could not meet several conditions set out by the
Chinese government," said Djoko.
The conditions include the provision of funds by the
Indonesian government amounting 10 percent of the project value
for financing the initial construction of the bridge within one
year.
Djoko, however, said that during the recent ministerial
meeting, China had agreed to revise the condition by allowing
Indonesia to provide only 5 percent of the funds each year for a
two-year period to help finance the construction.
Aside from the Suramadu project, Djoko added, China was also
eager to be involved in the planned Jatigede dam.
The dam is located in Sumedang regency -- some 130 kilometers
southeast of Jakarta -- and it is expected to provide water for
some 100,000 hectares of rice fields along the northern Java
coast, particularly in West Java province.
The dam will address the continual problems of drought and
flooding in West Java, particularly in Sumedang.