Signing of Japanese ODA Loan Agreements with Indonesia: Contributing to the strengthening of the Japan-Indonesia partnership by supporting economic growth and climate change response initiatives

［Goal 8］ Decent Work and Economic Growth
SDGs
［Goal 11］ Sustainable Cities and Communities
SDGs
［Goal 13］ Climate Action
SDGs

2023.04.06

On March 31, the Japan International Cooperation Agency (JICA) signed loan agreements with the Republic of Indonesia in Jakarta to provide Japanese ODA loans of up to a total of 173,667 million yen for the following four projects.

  • 1 . Disaster Resilience Enhancement and Management Program Loan (III) (loan amount: 30,000 million yen)
  • 2 . Peusangan Hydroelectric Power Plant Construction Project (II) (loan amount: 13,629 million yen)
  • 3 . Construction of Jakarta Mass Rapid Transit Project (Phase 2) (II) (loan amount: 87,918 million yen)
  • 4 . Patimban Access Toll Road Construction Project (loan amount: 42,120 million yen)

Details for the projects are provided below.

(1) Disaster Resilience Enhancement and Management Program Loan (III)

(a) Objective and Summary

The objective of the loan is to provide financial support for the implementation of Indonesia’s disaster-related policies and strategies, thereby contributing to the strengthening of the country’s capacity to deal with its frequent natural disasters. Co-financed by the French Development Agency (AFD), this loan will also contribute to the achievement of SDGs (Sustainable Development Goals) Goals 1 (No poverty), 11 (Sustainable cities and communities), and 13 (Climate action).

(b) Executing Agency

National Development Planning Agency
Address: Jl. Taman Suropati No.2, Jakarta 10310, Indonesia
Phone:+62-21-310-1984 FAX:+62-21-392-6249

(c) Planned Implementation Schedule

  • 1 . Completion of project: May 2023 – when the loan is executed
  • 2 . Issuing of letters of invitation for consulting services (including detailed design work): no hiring of consultants is planned for this program.
  • 3 . Tendering of announcement of initial procurement package for international competitive bidding on project construction: no work in conjunction with bidding is planned for this program.

(2) Peusangan Hydroelectric Power Plant Construction Project (II)

(a) Objective and Summary

The objective of this project is to improve the power balance and stability in Aceh and North Sumatra by increasing the power-supply capacity of these areas. It will do so through the construction of a hydroelectric power plant and related transmission and distribution lines, thereby contributing to the economic development of the Northern Sumatra region, as well as to the rehabilitation and reconstruction of Aceh province. The project will also contribute to the reduction of the environmental burden by utilizing renewable energy, and to the achievement of SDGs Goals 7 (Affordable and clean energy) and 13.

(b) Executing Agency

PT. Perusahaan Listrik Negara(Persero)
Address: Gedung Utama, Lt. 8, Jl. TrunojoyoBlok M/135, Kebayoran Baru, Jakarta
12160
Phone:+62-21-7261122

(c) Planned Implementation Schedule

  • 1 . Completion of project: July 2024 – when the 2nd Power Plant is operational
  • 2 . Issuing of letters of invitation for consulting services (including detailed design work): already contracted
  • 3 . Tendering of announcement of initial procurement package for international competitive bidding on project construction: already contracted

(3) Construction of Jakarta Mass Rapid Transit Project (Phase 2) (II)

(a) Objective and Summary

The objective of this project is to enhance the transportation capacity of the Jakarta metropolitan area, where traffic congestion is escalating in severity. It will do so through the construction of a mass rapid transit system in this area, thus meeting the increasing transportation demands and promoting the modal shift from automobile traffic to public transportation, while also improving the investment environment and mitigating the effects of climate change. This project will contribute to the achievement of SDGs Goals 9 (Industry, innovation and infrastructure), 11, and 13.
Special Terms for Economic Partnership (STEP)* will apply to the Japanese ODA loan for this project, and Japanese technology, including a signal system, will be introduced.

  • *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 stipulated under the equity method) of a Japanese company may be the main agreement partner.

(b) Executing Agency

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

(c) Planned Implementation Schedule

  • 1 . Completion of project: July 2029 – when the MRT operation is inaugurated
  • 2 . Issuing of letters of invitation for consulting services (including detailed design work): already contracted
  • 3 . Tendering of announcement of initial procurement package for international competitive bidding on project construction: already contracted

(d) JICA Contact Information

For further information about the procurement schedule, please contact the party listed
below.
Contact Point for JICA Indonesia Office
Address: Sentral Senayan II, 14th Floor Jl. Asia Afrika No. 8, Jakarta 10270, INDONESIA
Phone:+ (62-21) 5795-2112、FAX:+(62-21) 5795-2116

(4) Patimban Access Toll Road Construction Project

(a) Objective and Summary

This project will see the construction of a new access toll road leading to Patimban Port, which is currently being constructed under one of JICA’s ODA loan projects. The new road will improve access to the port from the industrial parks in the eastern part of the Jakarta metropolitan area, where many Japanese companies are located, thus contributing to the improvement of logistics functions in the area. The project is a public-private partnership (PPP) project, in which approximately 23 km out of the 37 km will be constructed under the project itself and the rest will be constructed by the private sector. The project will contribute to the achievement of SDGs Goals 8 (Decent work and economic growth) and 9.

(b) Executing Agency

Directorate General of Highways, Ministry of Public Works and Housing
Address: Jl. Pattimura No, 20, Kebayoran Baru, Jakarta Selatan, 12110 Indonesia
Phone: +62 21 7203165, Email: dirjenbm@pu.go.id

(c) Planned Implementation Schedule

  • 1 . Completion of project: February 2025 – when the construction is completed
  • 2 . Issuing of letters of invitation for consulting services (including construction supervision): January 2023 (already issued)
Project title Amount
(million yen)		 Annual interest rate (%) Repayment
period
(years)		 Grace
period
(years)		 Procurement
Project Consulting services
Disaster Resilience Enhancement and Management Program Loan (III) 30,000 0.5 N/A 15 5 General untied
Peusangan Hydroelectric Power Plant Construction Project(II) 13,629 0.7 0.01 15 5 General untied
Construction of Jakarta Mass Rapid Transit Project (Phase 2) (II) 87,918 0.1 0.01 40 10 Japan tied
Patimban Access Toll Road Construction Project 42,120 1.05 0.01 15 5 General untied

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