Signing of Japanese ODA Loan Agreement with Indonesia: Contributing to an alleviation in traffic congestion through construction of MRT

[Goal 9] Industry, Innovation and Infrastructure
SDGs
[Goal 11] Sustainable Cities and Communities
SDGs
[Goal 13] Climate Action
SDGs

2024.05.14

On May 13, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the Republic of Indonesia in Jakarta to provide a Japanese ODA loan of up to 140,699 million yen for the Jakarta Metropolitan Mass Rapid Transit East-West Line Project Phase 1 (I).

This project aims to enhance transportation capacity in the increasingly congested Jakarta metropolitan area through the construction of a mass rapid transit system connecting central and eastern-western parts. It seeks to address the area’s growing transportation demands, facilitate a modal shift from automobile traffic to public transportation, alleviate traffic congestion, and concurrently improve the living and investment environment while furthering environmental impact reduction and climate change mitigation. This project will contribute to the achievement of SDGs Goals 9 (Industry, innovation and infrastructure), 11 (Sustainable cities and communities), and 13 (Climate action).

signing ceremony

signing ceremony

signing ceremony

signing ceremony

Special Terms for Economic Partnership (STEP)* will apply to the Japanese ODA loan for this project, and Japanese technology such as the Mud Pressurization Shield Method for civil works for railway vehicles and signaling systems will be utilized.

* STEP refers to special assistance terms for promoting the visibility of Japanese aid through a transfer of outstanding Japanese technology and expertise to developing nations. The main contract is Japan tied and subcontracting is general untied. The main agreement partner must generally be a Japanese company, an overseas subsidiary of a Japanese company, or a joint venture between a Japanese company and the borrowing country where the Japanese company is the lead partner, although under certain conditions a joint venture between a Japanese company (which is the lead partner of the joint venture) and an affiliated company (as accounted under the equity method) of a Japanese company may be the main agreement partner.

Details for the loan are provided below.

1. Terms and Amount of Loan

Project title Amount
(million yen)
Annual interest rate (%) Repayment
period
(years)
Grace
period
(years)
Procurement
Project Consulting services
Jakarta Metropolitan Mass Rapid Transit East-West Line Project Phase 1 (I) 140,699 0.30 0.20 40 10 Japan tied

2. Executing Agency

Directorate General of Railways, Ministry of Transportation
Address: Jl. Medan Merdeka Barat No. 8 Jakarta 10110
Phone: +62-21-3505558 FAX: +62-21-3523643

Provincial Government of DKI Jakarta
Address: Jakarta Provincial Government Building, Jl. Mean Merdeka Selatan No.8-9,
Jakarta 10110
Phone: +62-21-3822159 FAX: +62-21-3842871

PT Mass Rapid Transit Jakarta
Address: Wisma Nusantara, 21st Floor, Jl. M.H. Thamrin 59, Jakarta 10350
Phone: +62-21-3103629 FAX: +62-21-3155846

3. Planned Implementation Schedule

4. JICA Contact Information

For further information about the procurement schedule, please contact the party
listed below.
Contact Point for Transportation Sector, JICA Indonesia Office,
Address: Sentral Senayan II, 14th Floor Jl. Asia Afrika No. 8, Jakarta 10270,
INDONESIA
Phone: +62-21-57952112 FAX: +62-21-57952116

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