RI And Japan Sign Volcano Risk Reduction Loans Of IDR 2.38 Trillion

Head of the Economic Division of the Japanese Embassy Ueda Hajime (left) and the Head of the Japan International Cooperation Agency (JICA) Sachiko Takeda (medium) delivered a statement at a press conference in Jakarta, Tuesday (12/24/2024). ANTARA/Cindy Frishanti

JAKARTA - The Indonesian Ministry of Foreign Affairs (Kemlu) and the Japanese Embassy in Jakarta signed a loan project for the sector to reduce the risk of Indonesian volcanic disasters.

The head of the Japanese Embassy's Economics Section, Ueda Hajime, said that the loan project to reduce the risk of volcanic disasters was worth 23.148 billion yen or around IDR 2.38 trillion.

The loan project was signed by the Director General of Asia Pacific and Africa of the Indonesian Ministry of Foreign Affairs Abdul Kadir Jailani and the Japanese Ambassador to Indonesia Masaki Yasushi.

Ueda said that the loan project sector for reducing the risk of volcanic disasters aims to contribute to sustainable social and economic development in Indonesia's volcanic area.

The reduction in risk is carried out by improving and maintaining erosion control facilities and implementing non-structural measures to reduce disaster risk and restore damage caused by volcanic eruptions, Ueda said.

"Currently, three volcanoes are targeted, namely Mount Kelud in East Java, Mount Agung in Bali, and finally Mount Semeru in East Java," he said at a press conference, Tuesday, December 24, which was confiscated by Antara.

Ueda also mentioned that the project on Mount Agung in Bali is an unprecedented project.

Ueda revealed that reconstructing structural facilities to control volcanic eruptions and activities on Mount Agung in Bali is very new to Japan.

The project loan worth 23.148 billion yen was carried out with a fixed interest rate of 1.6 percent (0.2 percent per year for the portion of consulting services) and a return period of 30 years with a grace period of 10 years.

On the same occasion, Head of Japan International Cooperation Agency (JICA) Sachiko Takeda said the implementation of the volcanic disaster risk reduction project was carried out from December 2024 to July 2031.

Previously, the Indonesian Ministry of Foreign Affairs and the Japanese Embassy on Tuesday signed a memorandum exchange for two loan projects totaling 38.693 billion yen or around Rp3.9 trillion.

The two loan projects are loans to the sector to reduce the risk of volcanic disasters in the amount of 23.148 billion yen (Rp2.38 trillion) and loans to the integrated development sector of fishery ports and international fish markets amounting to 15.545 billion yen or around Rp1.6 trillion.