SOFT LOANS FOR RI:

JP/oby

Indonesia and Japan signed diplomatic notes for Japanese overseas development assistance yesterday, making available loans to the sum of 195.2 billion yen (US$1.47 billion).

The loans, signed by Minister of Foreign Affairs Ali Alatas (right) and Japanese ambassador Takao Kawakami (left), constitute a major portion of the 213.8 billion yen in overseas development assistance pledged by Tokyo under the package from the Consultative Group on Indonesia which met in July.

"Japan has demonstrated its fundamental policy to provide Indonesia with utmost support so that the country can meet the pressing needs of continuous economic development," the Japanese Embassy said in a statement here yesterday.

Projects featured by the loans include various road projects, electricity and water resources.

Three projects on the prevention of natural disasters and the environment have also been included along with those on poverty alleviation and human resources development.

Japan will also extend additional assistance in an effort to promote structural adjustments in accordance with the newly announced IMF programs on Jan. 15. (mds)