December 11, 2013
The fourth meeting of the Steering Committee
Today, the fourth meeting of the Steering Committee was held by the Governments of Japan and Indonesia in Tokyo for the Metropolitan Priority Area for Investment and Industry (MPA) in Jabodetabek Area. Co-chaired by Fumio Kishida, minister of Foreign Affairs of Japan, and Hatta Rajasa, coordinating minister for Economic Affairs of the Republic of Indonesia, the Steering Committee was attended by cabinet ministers of both governments including Akihito Ohta, minister of Land, Infrastructure, and Transportation, Yoshihiko Isozaki, parliamentary vice minister of Economy, Trade and Industry, and Hidayat, minister of Industry, and progress of MPA projects was confirmed.
In December 2010, the Governments of Japan and Indonesia agreed to cooperate in promoting further growth in the Jabodetabek Area, the economic engine of Indonesia, with the aim of solving the lack of infrastructure. The MPA Strategic Plan is an important initiative for strengthening the strategic partnership between Japan and Indonesia, which are celebrating the 55-year anniversary of establishing diplomatic relations. At the Steering Committee, the progress of major projects included in the MPA Strategic Plan approved in the third meeting of the Steering Committee in October 2012 was confirmed and both governments confirmed that they would cooperate closely toward further progress. The Government of Indonesia expressed its gratitude during the meeting for the continuous cooperation of Japan.
In addition to the commencement of construction of the Jakarta Mass Rapid Transit (MRT) North-South Line Project Phase I (financed by a Japanese ODA loan) in October 2013, which will be the first subway in Indonesia, there has been visible progress since the third Steering Committee including the commencement of construction of the Reconstruction of East Pump Station of Pluit in Jakarta (financed by Japanese grant aid) and the Smart Community Project through Japanese cooperation. Further, preparation is underway for strengthening the export capacity of Indonesia and promoting foreign investment in the Development of Cilamaya New International Port Project (including construction of the corresponding access road), as one of five MPA flagship projects.
To date, Japan has provided 113 billion yen in ODA financial cooperation to MPA Projects, and at the fourth Steering Committee, confirmation was made that both countries would continue to work closely together for securing the financial resources necessary to ensure major projects can progress without delay. In addition, it was reported that, through JICA technical cooperation, the MPA Support Facility would be established as a new initiative to promote public-private partnership (PPP)projects, and that a feasibility study for the Jakarta-Bandung section, the first interval of the Jakarta-Bandung-Surabaya High-Speed Railway Project, would begin in 2014, and the Government of Indonesia expressed its appreciation for this cooperation.
Both Japan and Indonesia have also cooperated under the MPA Strategic Plan to make Jabodetabek area more attractive for investment and make it environmentally and people-friendly. The fourth Steering Committee confirmed that both the public and private sectors of Japan and Indonesia were to continue providing cooperation toward completing the MPA Projects, and JICA would continue holding close dialogues with the Government of Indonesia and providing proactive cooperation.