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ITOCHU Announces Signing of Yen Loan Agreement for Indonesia: Contributing to Improvement of Investment Environment by Strengthening Logistics Functions in the Jakarta Metropolitan Area | News & Press Releases

Posted on 2025-01-142025-02-13 by Editor in Chief

The Japan International Cooperation Agency (JICA) signed a Loan Agreement (L/A) with the government of Indonesia for the “Patimbang Port Development Project (Phase III)” in Jakarta on January 10. The projects covered by the Loan Agreement are as follows

Signing Ceremony

Project Summary

Patimbang Port Development Project (Phase III)

Patimban Port Development Project (III)

Country (region covered)

Republic of Indonesia (Patimbang, Subang Province, West Java Province)

Business Objectives

This project aims to strengthen the logistics function of the metropolitan area by constructing a new port (container terminal, automobile terminal, etc.) in Patimbang in the eastern part of the Jakarta metropolitan area, thereby contributing to further economic growth in Indonesia by improving the investment environment.

Business

(a) The Project is divided into the preceding open port area (Phase1-1) and other Phase1-2) as follows.

Phase1-1 (Completed): Construction of 10ha container terminal and 22.4ha car terminal, breakwater and outer seawall, dredging of anchorage and navigation channel, construction of access road (approx. 8.1km), extension of existing pier, and construction of connecting bridge (approx. 1.0km)

Phase 1-2: Construction of 64ha container terminal and 13.7ha car terminal, dredging of berth and navigation channel, etc.

(b) Consulting services (detailed design, bidding assistance, construction supervision, etc.)

Loan amount (maximum)

83,408 million yen

Interest Rates

Main body: 0.30% (STEP) Consulting services: 0.20% (STEP)

Redemption period

40 years (including 10 years of deferment)

Procurement Conditions

Japan Tide

Implementing Agency

The Directorate General of Marine Transport of the Ministry of Transport is responsible for overall project control, port construction, land acquisition and resettlement, and maintenance. The construction work of the access road is under the control of the Directorate General of Roads of the Ministry of Public Works under the control of the Directorate General of Shipping of the Ministry of Transport.

Contribution to the achievement of the SDGs

Goal 8 (both job satisfaction and economic growth)

Goal 9 (Create a foundation for industry and innovation)

Schedule for future project implementation (tentative)

(1) Project completion date: 2028 (project completion at the time of facility provision)

  1. expected date of sending invitation for consulting services (detailed design, etc.): hired
  2. public announcement of bids for the first package of international competitive bidding for the main body of work: contracted

The yen loan is subject to the STEP (see note below), which allows for the use of Japanese construction technologies for quay wall/seawall construction, reclamation, ground improvement, etc., which are superior in terms of shortening the construction period for rapid implementation of the project and reclamation work on soft ground.

(Note) Abbreviation for Special Terms for Economic Partnership. Terms and conditions for the provision of yen loans established to promote Japan’s “face-to-face assistance” through the transfer of technology to developing countries utilizing Japan’s superior technology and know-how. The main contractor is Japan Tide and the subcontractor is General Untied. The main contractor must be either a Japanese company, a subsidiary of a Japanese company located overseas, or a joint venture (JV; the Japanese company is the lead partner) between a Japanese company and the borrowing country. Under certain conditions, a JV between a Japanese company and an equity-method affiliate of the Japanese company (with the Japanese company as the lead partner) may also be the lead contractor.

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© Source JICA

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