US$ 43 billion infrastructure investment for Jakarta

Indonesia and Japan have reach an agreement that could see up to US$ 43 billion invested in 45 infrastructure projects in the Indonesian capital, Jakarta, by 2020.

The deal was reached during the 4^th Indonesia-Japan Joint Economic Forum was held on October 8 in Tokyo, Japan. It was co-chaired by Hatta Rajasa, Indonesia’s co-ordinating Minister for Economic Affairs, and Yukio Edano, the Japanese Minister of Economy, Trade & Industry.

Mr Rajasa said, "We have agreed the projects to be financed 55% by private parties and 45% by public-private partnership, and using the national budget and loans.”

Mr Edano said that Japan would likely provide around IDR 125 trillion (US$ 13 billion) over the next ten years from its development assistance and foreign aid programmes to support the projects.

The projects would be carried out under Indonesia’s Metropolitan Priority Areas development programme which envisages the development of a mass rapid transport system, a new international sea port, the extension of airports and the development of waste water systems.