'Japan is asking that the Indonesian government accelerate the construction of the Cilamaya Port and it says that more initiatives are needed to develop industrial infrastructure,' Industry Ministry director general for international industry cooperation Agus Tjahajana said on Thursday, as quoted by Antara news agency.

Agus added that Japan was willing to assist in developing and constructing the port if it needed to, but there were as yet no plans to do so.

Meanwhile, Tanizaki commented that Japanese companies and state-owned enterprises have stepped up their large-scale investment projects in Indonesia and he voiced hope that small and medium-sized Japanese businesses would continue to invest in the archipelago to help improve its investment structure.

'I hope that small and medium Japanese businesses can invest in Indonesia, particularly in the spare auto parts sector or in raw materials,' Tanizaki said, adding that more investment would increase Indonesia's business competitiveness, technological advancement and create jobs as well.

In August, the government announced possible plans to scrap the Cilamaya Port project over concerns that hundreds of hectares of rice paddies would be lost in order to accommodate construction.

Other issues that concern the project include the fact that state-run oil and gas company PT Pertamina would have to relocate its offshore plant in West Java if the Cilamaya Port was constructed.

Pertamina's plant relocation would affect the oil supply to electricity plants belonging to the state-run electricity firm, PT Perusahaan Listrik Negara (PLN), which would decrease the availability of electricity for the capital city and surrounding areas. (dyl/nfo)(+++)

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