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Friday, May 11, 2007
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11 Japan Loan Bank Projects Delayed
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The National Development Planning Agency (Bappenas) has discovered that the realization of 11 infrastructure projects funded with loans from the Japan Bank for International Cooperation has been delayed.
“The delayed projects belong to the Public Works Department, the Transportation Department, Cipta Karya and Bina Marga,” Benedictus Benny Setiawan, Director of Development Funding Monitoring and Evaluation told Tempo at his office, Jakarta, yesterday (9/5).
Benny explained that the projects were delayed because of land acquisition and project procurement.
Four projects were delayed because of land acquisition problem, Batanghari Irrigation; North Java Corridor Flyover, Tanjung Priok Access Road and Double Double-Track.
The projects which were delayed by procurement are Lower Solo River Improvement, Komering Irrigation Project, PTSL for Water Resources Development and the Railway Electrification and Double Double-Track.
The projects' procurement was hampered due to land acquisition.
The Dumai Port project was delayed by the Indonesian Military (TNI) Navy’s quay demolition.
The problem was settled in the end of 2006, but the process must be accelerated because it is likely to not to be completed on schedule.
The Maritime Education and Training Improvement project is also not in accordance with schedule due to design alterations.
The constraints resulted in the absorption of loans being low.
Benny said that not all of the loans from the Japan Bank were absorbed.
The US$5.95 billion in loans from the Japan Bank is equivalent to 40.8 percent of the total foreign loans for infrastructure projects.
Funds from Japan Bank are allocated for 51 projects.
The delay in projects and fund absorption did not make the government pay commitment fee to Japan Bank.
However, infrastructure facilities cannot be enjoyed soon by the general public and economic costs have occurred.
“Roads were ruined due to high transportation cost,s so goods' prices are also high,” said Benny.
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tempo
Labels: Bank, Internet News, Loan, Money, Tax
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posted by ojack_djakarta
1:46 PM
 
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Wednesday, April 25, 2007
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BI Cautious of Private Sector’s Foreign Currency Loans
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Bank Indonesia (BI) is cautious of the increase of the private sector’s loans in foreign currencies. This was conveyed during BI’s coordination meeting with Coordinating Minister for the Economy and Finance Minister yesterday (23/4). Head of the Fiscal Policy Agency at the Finance Department, Anggito Abimanyu, said that during the meeting BI asked how much financing in foreign currency was, especially for the 10,000 megawatt electricity generator mega-project. “BI Governor said not to let the private sector’s foreign currency loans be in excess. But we can only monitor it,” said Anggito at the Finance Department building, Jakarta, yesterday. He refused to comment on whether the private foreign currency loan is in excess so BI and the government are concerned this will cause Indonesia’s economy to break down – like the economic crisis in 1997-1998. “I have no comment on that issue. The current condition is different from before the crisis,” he said. State Minister for the National Development Planning concurrently Head of the National Development Agency (Bappenas), Paskah Suzetta, confirmed there are concerns that uncontrolled private foreign currency loans have the risk to trigger an economic crisis as in 1997. However, he said that neither the government nor BI can limit the incoming or outgoing capital flow like what Thailand does. “Those are private loans. How can we regulate them? Moreover, we follow the free foreign reserves system,” he explained. BI’s data shows that in late December 2006, private loans totaled US$51.131 billion. This number soared by US$1.1 billion from September’s US$50.056 billion. The government’s foreign currency loan was US$74.126 billion. From the private loans, US$39.18 billion belonged to banking and the remaining to the non-banking sector.
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Tempo
Labels: Internet News, Loan, Politics
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posted by ojack_djakarta
1:42 PM
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