Japanese ODA Loan to the Republic of Indonesia

March 28, 2008

1.   The Government of Japan has decided to provide a Japanese ODA loan of up to 60.741 billion yen in total to the Government of the Republic of Indonesia to support its economic and social development efforts.  Notes to this effect were exchanged in Jakarta on March 28 (Fri.) between Mr. Shin Ebihara, Ambassador of Japan to Indonesia, and Mr. M. Ibnu Said, Expert Staff to the Minister of Foreign Affairs for Management, Department of Foreign Affairs of the Republic of Indonesia.

 Projects and maximum amounts of loans

(1) Participatory Irrigation Rehabilitation and Improvement Management Project

12.310 billion yen

(2) Decentralized Irrigation System Improvement Project in Eastern Region of Indonesia (II)

8.967 billion yen

(3) Railway Double Tracking on Java South Line Project (III)

18.819 billion yen

(4) Development of World Class University at University of Indonesia

14.641 billion yen

(5) Denpasar Sewerage Development Project (II)

 

6.004 billion yen

Total: 60.741 billion yen

 

2.  Outline of the Projects

    (1) Participatory Irrigation Rehabilitation and Improvement Management Project

       The project is intended to increase rice production and to ensure food security in nine provinces of the western part of Indonesia by repairing and expanding irrigational facilities.

     

    (2) Decentralized Irrigation System Improvement Project in Eastern Region of Indonesia (II)

       The project is intended to increase food production, to improve farmers’ income and to ensure food security in nine provinces in the eastern part of Indonesia by repairing, expanding and newly constructing irrigational facilities.

     

    (3) Railway Double Tracking on Java South Line Project (III)

       The project is intended to improve railway transportation and investment environment, and to promote economic development in Java by constructing a double tracking railway for the Java South Line.

     

    (4) Development of World Class University at University of Indonesia

       The project is intended to upgrade medical education and to strengthen medical research in the University of Indonesia by improving and expanding the Department of Medicine and to improve the quality of medical services in the provinces of Indonesia by improving coordination between the University and regional universities.

     

    (5) Denpasar Sewerage Development Project (II)

       The project is intended to increase the coverage of the sewerage system, to improve the living environment and to preserve tourist resources in Bali by constructing sewerage pipelines.

 

3.  Loan conditions

    For projects (1), (2), (3) and (4)

      (1) Interest rate: 1.4 % per annum (general terms)

      (2) Repayment period: 30 years (including a 10-year grace period)

      (3) Procurement method: general untied

    For project (5)

      (1) Interest rate: 0.65 % per annum (priority term for global environment and anti-pollution measures)

      (2) Repayment period: 40 years (including a 10-year grace period)

      (3) Procurement method: general untied

(END)


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