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Jokowi seeks more loans from Japan
President-elect Joko âJokowiâ Widodo met with former Japanese prime minister Yasuo Fukuda on Monday, and expressed his interest in receiving further loans from Japan for infrastructure projects
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resident-elect Joko 'Jokowi' Widodo met with former Japanese prime minister Yasuo Fukuda on Monday, and expressed his interest in receiving further loans from Japan for infrastructure projects.
After the meeting, Jokowi said the relationship with Japan would be instrumental in Indonesia's development.
'Discussions on the loans [for infrastructure] are on the table along with our need for more investment,' said Jokowi after the meeting.
Jokowi said Japanese loans and investment would be particularly needed for the development of maritime infrastructure, railways and mass-rapid transit (MRT). 'The meeting is a fundamental part of our effort to forge a better relationship with Japan in the future,' said Jokowi, without elaborating further.
Infrastructure development is among Jokowi's key campaign promises as the country's electricity, highway and seaport capacity can no longer accommodate soaring demand, creating bottlenecks in all economic areas of Java.
After the meeting, Jokowi accompanied Fukuda to inspect the ongoing MRT project at the Hotel Indonesia traffic circle in Central Jakarta. The project is mostly financed and supplied by Japan.
Fukuda, who is visiting in his capacity as the president of the Japan-Indonesia Association, said he invited Jokowi to Japan to see infrastructure development there.
'This project [MRT] is very positive not only for the development of Jakarta but also for Indonesia. I've already invited Pak Jokowi to Japan,' said Fukuda.
Japanese Ambassador to Indonesia Yoshinori Katori and Japan-Indonesia Association deputy presidents Naoki Kuroda and Yutaka Iimura accompanied Fukuda in the meeting.
National Graduate Institute for Policy Studies president Takashi Shiraisi, CEO Teijin Oyagi and Mitsubishi Corporation in Indonesia regional coordinator and advisor Masataka Komiya were also present.
Japan is Indonesia's biggest bilateral lender and foreign investor.
As of April this year, Japan's outstanding bilateral loans to Indonesia amounted to Rp 242,68 trillion (US$20.9 billion), mostly for infrastructure development, according to the Finance Ministry's debt management office.
On Aug. 12, Japanese Foreign Minister Fumio Kishida met Jokowi to call for a review of Indonesia's mineral-export ban, which has hit the Japanese smelting
industry hard.
Jokowi said the Japanese government expected Indonesia's incoming government to further discuss the implementation of the Mining Law, in the hope that the export ban could be eased.
'I have emphasized that I will uphold the law and the Constitution, which mandates that all natural resources should be used for the benefit of [Indonesian] citizens. However, I am open to talk to them about technicalities if they so desire,' Jokowi said.
Japan formerly secured nearly 50 percent of its nickel-ore needs from Indonesia and threatened to take Indonesia to the World Trade Organization following the implementation of the ban in January.
Fukuda also met with President Susilo Bambang Yudhoyono on Monday. 'It was conveyed by President Yudhoyono to Mr. Fukuda during the meeting that the relationship between the two countries can hopefully be maintained,' said presidential spokesman Julian Pasha as quoted by Antara.
'It is not only about cooperation in the economic field but also in politics and security,' he said.
