Japan-RI Agree with Rp 3.5 Trillion Loan to Build Central Sulawesi Infrastructure Post-Earthquake

Jakarta, MINA – Japanese Ambassadors to Indonesia Masafumi Ishii and Desra Percaya, Director General of Asian, Pacific and African Affairs, Ministry of Foreign Affairs of the Republic of Indonesia signed a Memorandum of Exchange or E/N for one yen loan project worth 27.970 billion yen or Rp.3.5 trillion.

Kazuhiko Shimizu, Economic Counselor, Embassy (Japan) said that the loan project will be used to rebuild infrastructure in Central Sulawesi due to the earthquake and tsunami on 28 September 2018.

“It is hoped that it will provide benefits to form a community that is more resilient in the face of natural disasters,” Shimizu said during a Press Briefing at the Embassy of Japan’s Auditorium in Jakarta on Tuesday.

Shimizu further explained the yen loan project would target several infrastructure sectors that require urgent reconstruction such as bridges and embankment, roads, irrigation, liquefaction countermeasures, and public facilities.

Meanwhile, the project is planned to be implemented by the Ministry of Public Works and Housing Development (PUPR).

In the project, he said Palu City and Sigi Regency would be the top priority for aid recipients. But Shinizu said his party was still conducting consultations with several parties, including with stakeholders.

Regarding the yen loan notes, the Government of Indonesia has a repayment period of 40 years, including a 10-year grace period with an interest rate of 0.01 percent.

An earthquake measuring 7.4 R, centered 80km north of the city of Palu, shook Central Sulawesi on September 28, 2020. As of November 20, 2018, the earthquake was recorded to have caused 2,101 people were died, 4,438 people were injured, 1,373 people were lost and 70,000 homes were destroyed by landslides which is thought to have been caused by liquefaction and affected by the tsunami. (L/RE1/P2)

Mi’raj News Agency (MINA)