Japan has decided to disburse funds of 10 billion US dollars (Rp171 trillion) to help Southeast Asian countries in the face of rising crude oil prices due to the conflict in the Middle East.
According to Japanese government sources, Wednesday, April 15, the aid will be provided in the form of loans to help Southeast Asian countries secure crude oil supplies.
Japanese Prime Minister Sanae Takaichi will also announce the aid plan at an online meeting with leaders of Southeast Asian countries in the near future, according to the source.
Japan is known to import petroleum-derived products from Southeast Asia, including products used in medical facilities.
Given that countries in Southeast Asia have limited oil reserves, there is concern that the limited supply could have an impact on Japan.
"We are considering cooperation with Asian countries to secure the supply of petroleum products and strengthen the supply chain," Cabinet Secretary Minoru Kihara said at a news conference Wednesday.
The soaring oil prices have raised concerns in several Southeast Asian countries regarding their ability to pay for the import of these commodities.
Any disruption in the procurement process of these commodities can have serious consequences for the medical health sector as well as various industries in Japan, said the source.
Therefore, Tokyo is seeking to reduce these risks through financial assistance, including through loan facilities provided by the Japan Bank for International Cooperation (JBIC), in order to ensure the stability of energy supply and mitigate wider economic impacts.
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