Japanese ODA Loan to the Republic of Indonesia
March 24, 2008
- The Government of Japan has decided to provide a Japanese ODA loan of up to 22.08 billion yen in total to the Government of the Republic of Indonesia for the Fourth Development Policy Loan with a view to promoting its efforts for economic and social reforms. Notes to this effect were exchanged in Jakarta on March 18 (Tue.) (the same day in local time) between Mr. Shin Ebihara, Ambassador of Japan to Indonesia, and Mr. Imron Cotan, Secretary General, Department of Foreign Affairs.
Project and maximum amount of loan
- Fourth Development Policy Loan (22.08 billion yen)
- Outline of the Project
This project, co-financed by the World Bank and the Asian Development Bank, aims to assist the Government of Indonesia in stabilizing the macro economy, improving the investment environment, promoting reform in the fields of governance and others, and alleviating poverty.
This project will improve the investment environment, stabilize the macro economy, promote economic and fiscal reform, and enhance governance. Consequently, it is expected to increase investment by private companies and alleviate poverty. As the Japan-Indonesia Economic Partnership Agreement (EPA) was signed last year, further improvement of Indonesia's domestic investment environment is essential in order to bring actual trade investment from Japan.
- Loan conditions
- (1) Interest rate: 0.70% per annum
- (2) Repayment period: 15 years (including 5-year grace period)
- (3) Procurement method: general untied
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