The government may provide low-interest yen loans to Indonesia to help it build a major new port in Patimban, 120 kilometers east of Jakarta, sources said.
As the Indonesian side has estimated construction will cost ¥300 billion, this is likely to be one of the largest Indonesian projects in which Japan has participated, the sources said.
Tokyo hopes the project will help it to regain the ground lost to Beijing last year in a tender to build a high-speed railway in Indonesia.
Prime Minister Shinzo Abe told Indonesian President Joko Widodo of Tokyo’s wish to help out with the port during a meeting in Kuala Lumpur last November.
The port is expected to become a new major distribution hub as areas between Jakarta and Patimban host many industrial parks, including those where Toyota Motor Corp., Honda Motor Co. and other major Japanese companies operate.
During a visit to Japan in February, Indonesian Transportation Minister Ignasius Jonan notified the Japanese government of Jakarta’s plan to accept yen loans from Tokyo for the port plan.
The Japanese side has agreed to conduct a feasibility study on the project.
Japan considers underwriting construction of Indonesian port