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Japan to Help Build $43 Billion of Projects in Jakarta City

Japan will help Indonesia build 410 trillion rupiah ($43 billion) of infrastructure projects, including roads, railways, harbors, airports and power plants, in Jakarta by 2020.

The two governments approved a master plan for the development of 45 projects today in Tokyo, they said in a joint statement. Construction of 18 priority projects from the total is scheduled to start by the end of 2013, according to the statement.

The two countries signed a memorandum of cooperation in December 2010 to study the plan to develop Jakarta’s metropolitan area. Mitsubishi Corp., Hitachi Ltd., JGC Corp., Taisei Corp., Chiyoda Corp. and Nippon Yusen K.K. were among 11 Japanese companies that participated in drawing up the master plan, Japan’s Ministry of Economy, Trade and Industry said in a statement.

The two governments will use public and private funding from both countries to develop the projects in the greater Jakarta area, which comprises Jakarta, Bongor, Depok, Tangerang and Bekasi. About 125 trillion rupiah of financial assistance for the plan from Japan and other countries is expected over the next decade, according to the joint statement.

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