Exchange of Notes for Japanese ODA Loan to the Republic of Indonesia (Climate Change Program Loan (III))

June 23, 2010
Japanese

The Government of Japan has decided to extend a Japanese ODA loan of up to 27.195 billion JPY for Climate Change Program Loan (III) to the Republic of Indonesia. Notes to this effect were exchanged on June 23 (Wed) in Jakarta, Indonesia between H. E. Mr. Kojiro Shiojiri, Ambassador of Japan to Indonesia, and Mr. T. M. Hamzah Thayeb, Director General for Asia Pacific and African Affairs, Ministry of Foreign Affairs.
Terms and Conditions
Interest rate: 0.15% per annum
Repayment period: 15 years (including a 5-year grace period)
Procurement method: General untied
Indonesian green house gas emissions, if carbon dioxide deriving from deforestation and the deterioration of peatland are included, would be the fourth largest after the US, China and Brazil. Also, there is a growing concern about the increasing risk of climate change with global warming. By supporting Indonesia’s climate change counter-measures through policy dialogue, this program loan contributes to the formation and the implementation of climate change policies (response to key policy issues, mitigation and strengthening of adaptation capacity).
This program loan is a part of Japan’s support for developing countries directed at dealing with climate change issues, up to 2012, which Japan announced last December. While aiming at establishing a fair and effective international framework which all major economies participate in and agreeing on ambitious targets by all major economies, Japan will continue to cooperate on climate change with Indonesia which has associated itself with the Copenhagen Accord.

(Reference)
Indonesia is 1.89 million square meters large (approximately five times as large as Japan), with a population of 228 million people (2008), and GNI per capita is 2,010 USD (2008).

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