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Jakarta Post
The Jakarta Post
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Indonesia, JICA sign deal on loan for MRT Phase II project

  • News Desk
    News Desk

    The Jakarta Post

Jakarta | Thu, October 25, 2018 | 08:24 pm
Indonesia, JICA sign deal on loan for MRT Phase II project An MRT train passes over Jl. Sisingamanganraja, South Jakarta, during the recent trial for theMRT Phase I project. (The Jakarta Post/Seto Wardhana)

The Finance Ministry and the Japan International Cooperation Agency (JICA) has signed a deal on a 70.21 billion yen (US$625.15 million) loan to finance the MRT Phase II project in Jakarta.

Under the loan agreement, the interest rate is at 1 percent with a 40-year tenure.

PT MRT Jakarta corporate secretary Tubagus Hikmatullah said on Wednesday that the loan scheme for MRT Phase II, which is an extension of the MRT Phase I project, was similar to the scheme for MRT Phase I project.

However, he said the loan could not be given right away. “Although it has been agreed on, it does not mean that the loan could be disbursed now,” he said as quoted by kontan.co.id.

The nearly complete 15.7-kilometer MRT Phase I runs from Lebak Bulus in South Jakarta and the Hotel Indonesia traffic circle in Central Jakarta, while the 7.8-kilometer Phase II project will extend to the Phase I project to Kampung Bandan in West Jakarta.

The total investment for the Phase I project reached Rp 16 trillion ($1.05 billion), while the investment for the Phase II project reached Rp 22.5 trillion.

The central government is responsible for 49 percent of the loan, while the Jakarta administration is  to shoulder 51 percent of the loan, Tubagus added.

The planned MRT Phase III project will be the East-West MRT line, connecting Bekasi in West Java and Tangerang in Banten. (bbn)

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