Govt finalizing talks with Japan to resume energy projects

Monday, February 25 2002 - 03:22 AM WIB

Coordinating Minister for Economy Dorodjatun Kuntjoro-Jakti left for Tokyo to finalize negotiations on the realization of the Japanese loans for the construction of five mega projects including steam-powered electricity plants Tanjungjati B, Paiton and Tuban, and the construction of Kujang IB fertilizer plants, and the South Sumatra ? West Java gas pipeline.

Kompas reported Monday that the coordinating minister would meet with Japanese Finance Minister Masajuro Shiokawa and Economic Minister Heizo Tanaka during the four-day visit.

The coordinating minister?s assistant for foreign affairs Syarifuddin A. Tamenggung said on Saturday that the amount of the loan which would be negotiated by Dorodjatun would reach about US$2.5 billion comprising of the Japanese government?s special loan and commercial loans.

The commercial loans would be used to resume the three power projects, which have been suspended after the crisis hit the country in late 1997. Tanjungjati B power plant will receive $800 million, Paiton ($800 million) and Tuban ($400 million) of the total commercial loans.

About $300 million and 400 million of the special loan will be used to finance the construction of the South Sumatra ? West Java gas pipeline and the other $200 million for the construction of the new fertilizer plant of the West Java-based fertilizer producer PT Kujang.

"The initial talks of the loans have been completed. Coordinating Minister Dorojatun will only finalize the loan negotiation," he said.(*)

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