DIGIVESTASI - Indonesia has received funding from Japan to expand Jakarta's east-west mass rapid transit (MRT) line. Without hesitation, the Land of the Rising Sun disbursed a loan worth 140.699 billion yen or equivalent to Rp 14.5 trillion. The loan will be used for the Phase 1 Phase 1 Project to build a metro line from Medan Satria to Tomang, a distance of about 24.5 km. The project is expected to be completed in 2031.

 “The project is expected to be completed in 2031, which is about 7 years,” said Yasui Takehiro, Chief Representative of the Japan International Cooperation Agency (JICA) in Indonesia, Monday (13/May 2024). Yasui said, in the future there will be a total of 21 stations, including 9 underground stations on the east-west MRT line. Japan's Rp14.5 trillion loan to Indonesia will be channeled through JICA. 

The loan from Japan has an interest rate of 0.3% with a consultation fee of 0.2%/year. The repayment period is 40 years, including a 10-year grace period. 

In addition, special economic partnership (STEP) requirements will apply to this project. Japanese technology will also be used to construct underground tunnels, railway facilities, and signaling systems. STEP itself is a necessary condition for the use of Japanese technology, which was established in July 2002 with the aim of providing indigenous Japanese support to developing countries. 

Previously, Japan through JICA poured a large amount of capital into the Jakarta subway project. For phase I, namely from Lebakbulus to HI Roundabout along 16 km, Japan provided a total of 192 billion yen or around 24.2 trillion rupiah distributed in several stages.  

The first loan (IP 536) worth 1.8 billion yen equivalent to Rp 200 billion for the period March 22, 2012 to March 22, 2017, the second loan (IP 554) worth 48 billion yen equivalent to Rp 5.5 trillion during July 28, 2009 to July 28, 2019, the third loan (IP 571) worth 72.2 billion yen equivalent to Rp 9.5 trillion yen for the period March 31, 2016 to March 31, 2022 and the fourth loan worth 70 billion yen equivalent to Rp 9,000 billion for the period April 23, 2019 to April 23, 2025.

The average interest rate of the loans granted is 0.2%. The repayment period is 40 years. As for Phase II of the HI Roundabout in Kampung Bandan, Japan also approved a loan worth 70.210 billion Yen or Rp 9.46 trillion. The interest rate of the loan provided is 0.1%, while the interest rate of the consultant is 0.01%. The loan repayment period is also quite long, namely 40 years.

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