Japan and Indonesia have reached agreements that will see the former contributing $13 billion to jointly funded infrastructure projects in Jakarta worth roughly $43 billion. The development plans include the construction of roads, railways, airports, and power plants in the Indonesian capital and its surrounding areas by the year 2020. Out of 45 projects approved by the two countries’ government in Tokyo on Tuesday, 18 are seen as priority developments that will begin before the close of 2013.
As Japan looks to capitalize on the strong economic growth of the Southeast Asian nation, the Ministry of Economy, Trade, and Industry has said that 11 Japanese companies, including Mitsubishi Corp., Hitachi Ltd., Chiyoda Corp., and Nippon Yusen K.K., would be participating in development plans. As one of the world’s most populated cities with a growing population of 10,187,595, Jakarta is well beyond struggling to maintain basic infrastructure.
Included in the priority development projects are the construction of Jakarta’s Mass Rapid Transit system, an international airport in Cilamaya, and the advancement of the city’s sewage system. The other areas in the greater Jakarta area to benefit include Bongor, Depok, Tangerang, and Bekasi. The nations of Japan and Indonesia reached peaceful diplomatic relations in 1958 after the signing of a peace treaty, and since then have gone on to reach a growing trade volume of roughly $53 billion per year.