Indonesia Secures $528 Million Japanese Loan for Patimban Port

Jayanty Nada Shofa
January 13, 2025 | 8:39 am
SHARE
Vehicles await shipment at Patimban Port in Subang, West Java, on December 17, 2021. The newly-built port marked its first major export shipment with the delivery of over 1,200 vehicles, including Toyota cars, to the Philippines. (Antara Photo/Dedhez Anggara)
Vehicles await shipment at Patimban Port in Subang, West Java, on December 17, 2021. The newly-built port marked its first major export shipment with the delivery of over 1,200 vehicles, including Toyota cars, to the Philippines. (Antara Photo/Dedhez Anggara)

Jakarta. Indonesia recently secured another Japanese loan worth 83.4 billion yen or approximately $528.4 million for the Patimban Port expansion.

In 2017, Tokyo greenlit a 118.9 billion yen loan for the construction of the port in West Java and lent another 70.2 billion yen to expand the Patimban Port in 2022. 

The freshly announced 83.4 billion yen funding will go into constructing a new port that will include container terminals, according to the Japan International Cooperation Agency (JICA), which is in charge of disbursing the funds. Other facilities will include a 13.7-hectare car terminal, access roads, and a one-kilometer bridge, to name a few.

The 83.4 billion yen loan adopts a tied loan scheme under the so-called Special Term Economic Partnership (STEP). In other words, Indonesia has to procure Japanese goods and expertise, including the technology needed for the quay wall or seawall construction and reclamation, to name a few.  This is unlike the general untied loans that let Indonesia as the borrower procure goods and services from any country.

Advertisement

The project has a 0.3 percent annual interest rate. The interest rate for the consulting services portion stands at 0.2 percent each year. Indonesia has 40 years to pay off those debts. Japan has granted a 10-year grace period for this financing. Indonesia is planning to have the new facilities to operate by 2028, according to JICA data. 

According to the Japanese Embassy in Indonesia, the port’s car export capacity is expected to increase to 600,000 units once the project is completed.

In late 2021, the government appointed the Indonesian consortium Pelabuhan Patimban International as the port’s operator. Toyota Tsusho Corporation, the trading arm of the Toyota Group, also took over the car terminal operations that year through its operating company Patimban International Car Terminal.

Indonesia Secures $528 Million Japanese Loan for Patimban Port
President Prabowo Subianto shakes hands with Japanese Prime Minister Shigeru Ishiba (left) after holding bilateral talks in Bogor Palace on Jan. 11, 2025. (Antara Photo/Aditya Pradana Putra)

The loan signing took place ahead of Japanese Prime Minister Shigeru Ishiba’s recent meeting with President Prabowo Subianto in Bogor. In his joint press statement, Prabowo said that both leaders had a “very friendly and intensive discussion”.

“We are committed to continue our partnership in economy and infrastructure,” Prabowo said.

Tags: Keywords:
SHARE

The Latest


News 2 hours ago

‘Why Visit Australia to Learn about Poverty Alleviation?’ Prabowo on Budget Cuts

He said the current austerity efforts are aimed at eliminating non-essential expenditures that offer minimal benefit to the people.
Business 2 hours ago

Certain Government Expenditures, Such as Maintenance, Cannot Be Slashed

"There's no way we can slash the budget for disaster mitigation efforts," an official said.
Business 5 hours ago

$3.1 Billion Worth of Free Meals Might Go to Rich Kids: Think-Tank

Celios says that Prabowo should not splurge Rp 306.7 trillion of the money potentially collected from the budget cuts on the free meal plan.
News 5 hours ago

Saudi Authorities Free Doctoral Student Initially Sentenced to 34 Years for Tweets, Activists Say

Al-Shehab was detained during a family vacation on Jan. 15, 2021, just days before she planned to return to the United Kingdom.
Opinion 8 hours ago

How to Respond to Government Spending Cuts

President Prabowo wants his government to take some cost-cutting measures, but such step can worsen corruption and affect other sectors.
COPYRIGHT © 2025 JAKARTA GLOBE. ALL RIGHTS RESERVED