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Japan reaffirms interest in three vital projects in Java
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Japanese Prime Minister Shinzo Abe (left) speaks with French President Francois Hollande (center) and Indonesian President Joko Widodo as they take part in the "Outreach Session" photo session with world leaders at the G7 Summit in Shima, Japan, on Friday. (AFP/Jim Watson)
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ndonesia and Japan have agreed to enhance economic ties in infrastructure by cooperating on the Trans-Java railway project and a deep-sea port in West Java as well as resuming a stalled steam power plant project in Central Java.
President Joko "Jokowi" Widodo and Japanese Prime Minister Shinzo Abe discussed these projects in a bilateral meeting on the sidelines of the G7 Outreach Meeting in Japan on Friday.
Japan expressed its interest in funding the US$3.09 billion Patimban deep-sea port in Subang, West Java with a loan of $2.49 billion. The port is a replacement for the planned Cilamaya port in Karawang, West Java, a project that was scrapped last year as it overlapped with offshore operations of state-owned energy firm Pertamina.
In response to the Japanese commitment, Transportation Minister Ignasius Jonan has been appointed as the person in charge for following up the bilateral cooperation, President Jokowi said in an official statement on Friday.
Japan also expressed its interest to invest in a 750-kilometer medium-speed railway line connecting Indonesia's capital Jakarta and its second largest city, Surabaya, which is estimated to cost around $1.81 billion.
The two leaders also discussed the continuation of a power plant project in Batang, Central Java, which was halted due to land clearing problems. The steam-fueled 2,000 megawatt power plant is funded by Japan Bank for International Cooperation (JBIC).
The bilateral meeting between President Jokowi and PM Abe in Shima, Japan, is their fourth meeting in less than two years. Japan is the third largest investor in Indonesia with $2.87 billion of investment in 2,030 projects.
In 2015, the trade volume between the two countries was valued at $31.27 billion, with Indonesian exports of $18 billion and imports of $13.26 billion. (ags)
