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Japan funds Indonesian electric trains

TOKYO - Japan will provide Indonesia 150 billion yen (US$1.38 billion) in aid for the development of its electrical train infrastructure, one of the results of bilateral talks between Indonesian President Megawati Sukarnoputri and Japanese Prime Minister Junichiro Koizumi.

"Under the current close economic cooperation between the two countries, Japan will assist Indonesia in the development of its infrastructure. Japan has decided to provide Indonesia with 150 billion yen in aid to develop its electric trains and the necessary infrastructure," Indonesian Foreign Minister Hassan Wirayuda said.

When asked whether Japan would still be committed to assist Indonesia after the discontinuation of the country's cooperation with the International Monetary Fund, Hassan said that even before the cooperation with the IMF, Japan has always assisted Indonesia.

"During the IGGI [Inter-Governmental Group on Indonesia] era, and now the CGI [Consultative Group for Indonesia] and up to the IMF, Japan was the biggest aid contributor to our economic development. This is a fact, and the second-biggest has been the Asian Development Bank," he said.

Hassan said that although Indonesia and the IMF will put an end to their cooperation as of December 31, the relations with the donor countries will remain intact.

In the past two years, he added, Japan has also helped Indonesia with its advice and ideas on economic improvement and development.

(Asia Pulse/Antara)

Dec 12, 2003

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