Press Releases

Signing and Exchange of Notes concerning the Yen Loan “Jakarta Metropolitan Mass Rapid Transit East-West Line Project Phase 1 (I)” for the Republic of Indonesia

May 13, 2024

On May 13, in Jakarta, the capital of the Republic of Indonesia, Mr. Yasushi Masaki, Ambassador Extraordinary and Plenipotentiary of Japan to the Republic of Indonesia, and Mr. Abdul Kadir Jailani, Director General of Asia-Pacific and African Affairs, Ministry of Foreign Affairs of the Republic of Indonesia, signed and exchanged notes for the yen loan project up to 140.699 billion yen in total to support the construction of a Mass Rapid Transit East-West Line in the Jakarta metropolitan area.
Japanese technology will be utilized in the vehicle and signaling systems under Japan’s Special Terms for Economic Partnership (STEP) [see Note 2].

(Note 1) Yen loans: Cooperation in the form of loans to provide developing countries with loans under moderate conditions (low interest rates and long repayment periods) to finance the construction of infrastructure and other necessary funds. For developing countries, since the funds are subject to repayment to Japan, it is expected to lead to effective utilization and self-sustaining development.

(Note 2) STEP: STEP was introduced in July 2002, with a view to raising the visibility of Japanese ODA among citizens in both recipient countries and Japan through best use of advanced technologies and know-how of Japanese firms.

  1. Outline of the Projects
    In the Special Capital Region of Jakarta, recent rapid economic growth and population increase, including in neighboring provinces, have resulted in economic losses due to serious traffic congestion and air pollution caused by exhaust gases, which are major issues.
    This project provides the Government of Indonesia with a loan for the construction of a Mass Rapid Transit system (East-West Line), including an underground section, in the Jakarta metropolitan area. The implementation of this plan is expected to contribute to easing traffic congestion, improving the investment environment, and reducing the environmental burden in the Jakarta metropolitan area by meeting the increasing transportation demand in the area and shifting from automobile transportation to public transportation. Japan provided an Engineering Service (E/S) loan (maximum amount: 1.919 billion yen) in November 2015 to support the design and other aspects of this project, and is now providing support for the actual construction based on this design.
  2. Loan terms
    1. Interest rate: 0.3% per annum (0.2% per annum for the consulting services portion)
    2. Repayment period: 40 years (including a 10-year grace period)
    3. Procurement Terms: Japan Tide
(Reference)Basic Data of the Republic of Indonesia

The Republic of Indonesia has an area of approximately 1.92 million square kilometers (about five times that of Japan), a population of about 275 million people (World Bank, 2022), and a gross national income (GNI) per capita of 4,580 USD (World Bank, 2022).

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