Japan Grants US$194,1 M Loans to Indonesia

VIVAnews - The Japanese government will grant loans around Rp 2.27 trillion (US$194.1 million) to the Indonesian government. It is an attempt from the Japanese government to speed up economic and social development.

"The loans will be divided into two: through development policy program and infrastructure reform program," said Deputy Ambassador of Japan on Development and Economy, Toru Maeda, prior to signing loans agreement at the Department of Foreign Affairs, Jakarta, on Tuesday, March 24.

Japan has granted loans of the first program for five times. The aim of the program that the World Bank manages, having Japan and Asian Development Bank (ADB) in assistance, if to improve investment climate, governance and poverty eradication.

Meanwhile, the infrastructure reform program is into the second phase. Given ADB as the regulator, having Japan and the World Bank in assistance, the program is aiming at accelerating infrastructure development.

The two kinds of loans must be repaid in 15 years, including a 5-year grace period.

Maeda said the loans are not granted to certain projects. The loans will be disbursed through Japan International Cooperation Agency (JICA) and be allocated as planned by National Development Planning Agency (Bappenas).

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Translated by: Bonardo Maulana Wahono