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Informasi Beasiswa & Pendidikan

Pusat Informasi, Pendidikan dan
      Kebudayaan

Jakarta, 28 March 2008
Japan to Provide Yen Loan Assistance to Indonesia for five projects

[Bahasa Indonesia]

1. The Government of Japan has decided to provide Yen Loan assistance to the Government of the Republic of Indonesia, totaling up to ￥60.741 billion* (approx. US$ 593 million) for five projects in order to support its efforts for economic and social development.


Notes to this effect were exchanged on March 28 in Jakarta between Mr. Shin Ebihara, Ambassador of Japan to the Republic of 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.


*Together with ¥ 22.08 billion of one program “Fourth Development Policy Loan” (notes were already exchanged on March 18, 2008) and ¥ 23.182 billion of “Disaster Rehabilitation and Management Sector Program Loan” (notes were exchanged on December 4, 2007), Japan’s yen loan agreed to extend to Indonesia in Japanese fiscal year 2007 totals ¥ 106 billion (approx.US$ 1 billion).


The project titles and maximum amounts are as follows;

(1)“Participatory Irrigation Rehabilitation and Improvement Management Project”
(¥ 12,310 million, approx. US$120.2 million)
(2)“Decentralized Irrigation System Improvement Project in Eastern Region of Indonesia (II)”
(¥ 8,967 million, approx. US$87.6 million)
(3)“Railway Double Tracking on Java South Line Project (III)”
(¥ 18,819 million, approx. US$183.8 million)
(4)“Development of World Class University at University of Indonesia”
(¥ 14,641 million yen, approx. US$ 143 million)
(5)“Denpasar Sewerage Development Project (II)”
(¥ 6,004 million, approx. US$58.6 million)

The outlines of the nine projects are as follows;

(1) Participatory Irrigation Rehabilitation and Improvement Management Project
This project is to rehabilitate and extend existing irrigation facilities in 9 provinces of the western part of Indonesia (Java, Sumatra and Kalimantan) as well as to support improving the operation and maintenance (O&M) system of the facilities, thus achieving enhanced rice production and ensuring food security.
 
（2）Decentralized Irrigation System Improvement Project in Eastern Region of Indonesia (II)
This project is to rehabilitate, extend, and newly construct irrigation facilities in 9 provinces of the eastern part of Indonesia, where agricultural infrastructure has not been extended sufficiently as a whole, and to support improving the operation and maintenance (O&M) system of the facilities, thus ensuring food security and reducing poverty through enhanced food production.
 
（3）Railway Double Tracking on Java South Line Project (III)
This project is to realize railway double -tracking on Java South Line(Kroya-Kutoarjo) and to conduct a detail design for railway double tracking on Java South Line (Cirebon-Kroya), in order to improve transportation capacity and railway safety in Java Railway Network from the viewpoint of improvement of investment climate and economic development.
 
（4）Development of World Class University at University of Indonesia
 This project aims at enhancing educational and research capacity of the “Health Faculties” of UI which consist of medical, dentistry, nursing and public health faculties through developing University Hospital and Health Faculties of UI with a view to contributing to improving quality of medical services in Indonesia including rural areas through strengthening their collaboration with regional universities.
 
(5)Denpasar Sewerage Development Project (II)
This project is to construct new sewerage pipes in Denpasar, Kuta and Sanur areas in Bali Island and to improve the operation and maintenance system led by local government in order to improve the living and natural environment.

3. Loan conditions are as follows;

 For project (1), (2), (3), (4)
i)Annual interest rate: 1.4% (general terms)
* Untuk bagian jasa konsultan proyek, tingkat bunga adalah 0,01%
  ii)Masa pembayaran kembali : 30 tahun (termasuk masa tenggang 10 tahun)
iii)Syarat pengadaan : pinjaman umum yang tidak mengikat
 
Untuk proyek (5)
  i)Annual interest rate: 0.65% (preferential terms)
*For consulting service part of the project, the interest rate will be 0.01%
  ii)Repayment period: 40 years (including a grace period of 10 years)
iii)Procurement condition: general untied loan

4. Through these five projects above and an already agreed one program, it is expected to achieve that the improvement of the investment climate and the enhancement of human resource development in Indonesia as well as the stabilization of macro economy and the governance reform by the Government of Indonesia will be achieved


5. With this exchange of notes, the aggregate of agreed Japan’s Yen Loans to the Republic of Indonesia amounts ¥ 4.272 trillion (approx.US$ 41.7 billion).


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