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The Japan Bank for International Cooperation (JBIC) has signed a loan agreement for up to US$1.869bn to finance engineering services for the Jakarta MRT System Project in Indonesia. 

The project will construct a mass rapid transit system of 14.5km, including Indonesia’s first subway, in the Jakarta metropolitan area. JBIC’s loan will fund engineering services for the basic design of the project. Since the project involves underground excavation in the heart of the city, Japan’s advanced technologies, including its shield tunnelling method currently being used in the construction of the Tokyo Metro No13 line, will be utilised to minimise the surface-level construction area. 

The project aims to increase passenger transport capacity and to ensure the efficient transport of freight, whilst reducing traffic congestion and air pollution in the region. It is also intended to improve the Indonesian investment climate.

Some 21mn people, or about 10% of Indonesia’s population, live in the Jakarta metropolitan area. The area accounts for 22% of Indonesia’s total industrial production.

While there has been a sharp increase in the number of people commuting to the city centre in recent years, only 2% of them use the under-developed rail service. Serious traffic congestion has led to a deterioration in living conditions, air quality and the investment climate. 

Through the provision of ODA loans, JBIC will continue to support infrastructure development for sustainable growth and poverty reduction in Indonesia.