Japanese ODA Loan to the Republic of Indonesia

March 31, 2009
Japanese

The Government of Japan has decided to provide a Japanese ODA loan of up to 71,245 million yen in total to the Government of the Republic of Indonesia, with a view to extending assistance for its economic and social development efforts. Notes to this effect were exchanged in Jakarta on March 31 (Tue) between Mr. Takio Yamada, Charge d'Affaires ad interim of Japan to Indonesia, and Mr.T.M.Hamzah Thayeb, Director General for Asia Pacific and African Affairs, Department of the Republic of Indonesia.

Projects and maximum amount of the loans

(1)Urban Flood Control System Improvement in Selected Cities   7,490 million yen
(2)Countermeasure for Sediment in Wonogiri Multipurpose Dam Reservoir (I)   6,060 million yen
(3)Development of Bandung Institute of Technology (III)   5,659 million yen
(4)Construction of Jakarta Mass Rapid Transit Project (Phase I)   48,150 million yen
(5)Engineering Services for Java - Sumatra Interconnection Transmission Line Project   3,886 million yen
Total   71,245 million yen

Outline of the Project

(1)Urban Flood Control System Improvement in Selected Cities

This project is intended to improve the infrastructure for rivers and controlling floods in Indonesia’s major cities which suffer from frequent flood disasters. It also gives support of various kinds such as strengthening the capacity of the watershed management office and drawing plans for comprehensive water resource control, taking measures for climate change into account.

(2)Countermeasure for Sediment in Wonogiri Multipurpose Dam Reservoir (I)

This project is intended to establish a sand removal facility and take measures to conserve the basin at the Wonogiri Multipurpose Dam, which is located in the upper reaches of the Solo River which runs through central Indonesia and eastern Java.

(3)Development of Bandung Institute of Technology (III)

This project is intended to improve the research facilities and promote cooperation between industry, academia and the community.

(4)Construction of Jakarta Mass Rapid Transit Project (I)

This project is intended to construct a mass rapid transit system in the Jakarta metropolitan area where the traffic jam causes serious problems.

(5)Engineering Services for Java - Sumatra Interconnection Transmission Line Project

This project is intended to produce a basic design for new power transmission lines and power conversion stations connecting the Java and Sumatra Lines.

Terms and conditions of the loan

Project: (1), (2) and (3)

(a) Interest rate: 1.4% per annum (general terms)(0.01% per annum for consulting services)
(b) Repayment period: 30 years (including a ten-year grace period)
(c) Procurement method: general untied
Preference terms will be applied to the fellowship part of project (3) to assist the fostering of human resource development. (Interest rate: 0.55% per annum, repayment period: 30 years (including a ten-year grace period))

Project: (4)

(a) Interest rate: 0.2% per annum (Special Terms for Economic Partnership :STEP)(0.01% per annum for consulting services)
(b) Repayment period: 40 years (including a ten-year grace period)
(c) Procurement method: Japan tied

Project: (5)

(a) Interest rate: 0.01% per annum
(b) Repayment period: 30 years (including a ten-year grace period)
(c) Procurement method: general untied

(END)

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