Japan will provide Indonesia with a total of ￥150 billion ($1.44 billion) in loans for the country to boost development of vital infrastructure in the coming years. Industry Minister MS Hidayat said Monday that the loan, made available through Japan's Overseas Development Agency (ODA), would help finance dozens of p
Japan will provide Indonesia with a total of ¥150 billion ($1.44 billion) in loans for the country to boost development of vital infrastructure in the coming years.
Industry Minister MS Hidayat said Monday that the loan, made available through Japan's Overseas Development Agency (ODA), would help finance dozens of projects under the Metropolitan Priority Area (MPA) programme, including their feasibility studies. The cooperation under the MPA programme was signed by both governments in 2010.
The flagship projects in the programme include the development of a port in Cilamaya, Karawang, West Java, and mass rapid transportation (MRT) system in Jakarta.
"With all its drawbacks, Indonesia will still attract investment from Japanese firms. That encourages the Japanese government to assist with the development of infrastructure here," Hidayat said.
Citing Tanjung Priok Port in North Jakarta as an example, Hidayat said that the backlog and inefficiency at the country's main port hampered export and import activities.
Investments from Japanese firms totaled $2.46 billion in 405 projects last year, while in January-September this year they reached $3.64 billion in 646 projects.