JAKARTA, KOMPAS – Indonesia Infrastructure Finance has signed a loan agreement amounting to 8 billion yen or around Rp 1 trillion with Japan International Cooperation Agency (JICA).

“This facility is another proof of how the international market has given us trust, also shows our commitment to develop infrastructure projects that are in line with social and environmental standards, especially those related to renewable energy,” said President Director of Indonesia Infrastructure Finance Arisudono Soerono through his official statement. in Jakarta, Monday (11/12).

He added, the funding support is expected to help increase business and investment to accelerate economic growth through private sector participation.

In addition, the loan is also expected to support Japanese companies and other international actors to participate in infrastructure projects in Indonesia.

For information, the National Development Planning Board of the Republic of Indonesia (BAPPENAS) estimates that Indonesia will need funds of Rp.5,519 trillion in the five-year period from 2015 to 2019.

The assumption is that 30 percent of this amount comes from mobilization from private funds. Thus the participation of private investment is needed in the infrastructure sector.

Previously, JICA signed a memorandum of understanding with the Indonesian government regarding loan funds for the construction of Patimban Port in West Java and the campus at Gadjah Mada University (UGM). The total loans for the two projects amounted to 127,215 billion yen, equivalent to Rp. 15.2 trillion.

Source: Kompas.com