Signing of Japanese ODA Loan Agreement with Indonesia: Contributing to the improvement of the investment environment by strengthening logistics functions in Jakarta Metropolitan Area


2025.01.22
On January 10, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the Republic of Indonesia in Jakarta, to provide Japanese ODA loan for the following project.
Signing ceremony
Terms and Amount of Loan
- Country (Target Areas)
The Republic of Indonesia
(Patimban, Subang Regency, West Java)
- Project Objective
The objective of the Project is to strengthen the port logistic capacity of Jakarta Metropolitan Area and improve the total economic activities in the region by constructing international seaport and access road in Subang Regency of West Java Province, thereby contributing to further economic development in the Republic of Indonesia.
- Project Component
1) Process-wise, the Project is divided into Phase 1-1 (early open port sections) and Phase 1-2 (sections other than the early open port sections) as follows:
Phase 1-1: Construction of a container terminal (10 hectares) and car terminal (22.4 hectares), breakwater, anchorage/channel dredging, and construction of access roads (about 8.1 km) and a bridge (about 1 km)
Phase 1-2: Construction of a container terminal (64 hectares) and car terminal (13.7 hectares), and anchorage/channel dredging
2) Consulting services (detailed design, tender assistance, work supervision, etc.)
- Maximum Loan Amount
83,408 million Japanese Yen
- Annual Interest Rate
Project: 0.30 % (STEP), Consulting Services: 0.20 %
- Repayment Period
40 Years
- Grace Period
10 Years
- Procurement
Japan tied
- Executing Agency
The Directorate General of Sea Transportation of the Ministry of Transportation (hereinafter referred to as “the DGST”) will manage the entire project, arranging for port construction work, land acquisition and resettlement, operation and maintenance (O&M), etc. The Directorate General of Highways of the Ministry of Public Works will oversee construction work for the access roads under the control of the DGST.
- Contribution to SDGs
Goal 8( Decent work and economic growth )
Goal 9( Industry, innovation and infrastructure )
- Planned Implementation Schedule
1. Completion of the Project: 2028, when the facilities are put into service
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
Special Terms for Economic Partnership (STEP)* will apply to the Japanese ODA loan for this project, and Japanese technology, including quay wall/seawall construction, reclamation, and ground improvement, etc., will be utilized for rapid implementation of the project and reclamation work on soft ground, etc.
* 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.
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