Japan Disburses IDR 14 Trillion Loan for Indonesia's MRT Project

TEMPO.CO, Jakarta - Japan has provided a loan totaling JPY 140.699 billion, which equals to IDR 14 trillion to Indonesia for its Mass Rapid Transit (MRT) East-West Corridor project. The exchange of notes or E/N was signed on May 13 by the Japanese Ambassador to Indonesia Masaki Yasushi and the Indonesian Foreign Ministry’s Director General for Asia Pacific and Africa Abdul Kadir Jailani.

The MRT's north-south route, which was introduced in March 2019 with Japan's Official Development Assistance (ODA), has emerged as a crucial transportation infrastructure that supports economic activities and the daily lives of the citizens. The new east-west line and comprehensive rail network will further alleviate traffic congestion, enhance the investment climate, reduce environmental impact, and tackle climate change.

In addition, the construction of the East-West Corridor MRT project is expected to provide the same level of safety, punctuality, and convenience as the existing line, allowing more people to access public transportation.

The Japanese Embassy in Jakarta explained that Special Terms for Economic Partnership (STEP) will be applied to this project, and Japanese technology will be used for the construction of underground tunnels, rolling stock, and signaling systems.

"Japan has lent its support to the expansion of the urban high-speed rail line connecting Central Jakarta from north to south, which commenced operations in 2019. The construction of the MRT’s East-West Line will increase the passenger transport capacity to the city’s east, west, south, and north areas,” said Yasushi.

He assured that his side would work in tandem with Indonesia to solve the country's significant issues such as alleviating traffic congestion in the metropolitan city, improving the investment climate, reducing environmental impact, and combatting climate change.

Meanwhile, Kadir expressed gratitude for Japan's unwavering support for the Jakarta MRT. The loan limit for this project is approximately Rp14 trillion with an interest rate of 0.3 percent, including 0.2 percent per year for the advisory services). Indonesia has 40 years to repay the debt and obtains a 10-year grace period. 

SUCI SEKARWATI 

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