Press Releases
Signing and Exchange of Notes Concerning Two Yen Loan projects to the Republic of Indonesia
On December 24, 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 concerning two Yen loan [see Note] projects for up to 38.693 billion yen in total.
- Outline of the Projects
- Volcanic Disaster Risk Reduction Sector Loan (up to 23.148 billion yen)
This project aims to contribute to sustainable social and economic development in the volcanic regions of Indonesia by repairing and improving erosion control facilities and implementing non-structural measures to recover from the damage caused by volcanic eruptions and reduce disaster risks. - The Sector Loan for Integrated Fishing Ports and International Fish Markets Phase 1 (up to 15.545 billion yen)
This project aims to increase the volume of marine products landed in the project areas and improve the quality of marine products sold through the supply chain by improving and renovating fishing ports and market facilities throughout Indonesia, thereby contributing to sustainable socio-economic development of the regions.
- Volcanic Disaster Risk Reduction Sector Loan (up to 23.148 billion yen)
- Loan terms
- 1. (1)
a- Interest rate:1.6% per annum (0.2% per annum for the consulting services portion)
b- Repayment period: 30 years (including a 10-year grace period)
c- Procurement Terms: Untied - 1. (2)
a- Interest rate: 1.8% per annum (0.2% per annum for the consulting services portion)
b- Repayment period: 30 years (including a 10-year grace period)
c- Procurement Terms: Untied
- 1. (1)
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.
The Republic of Indonesia has an area of approximately 1.92 million square kilometers (about five times that of Japan), a population of about 279 million people (Statistics Indonesia, 2023), and a gross national income (GNI) per capita of 4,870 USD (World Bank, 2023).