Indonesia secures USD 500 million loan from Japan for Patimban Port Development

January 25, 2025 — The Japan International Cooperation Agency (JICA) has announced the signing of an over USD 500 million worth of Yen denominated loan agreement with the Indonesian government to support the Patimban Port Development Project. This project aims to enhance logistics capabilities within the Jakarta Metropolitan Area.

The loan agreement was signed on 10 January 2025, a news release from JICA stated.

The project will be implemented in two phases: Phase 1 will focus on the construction of a container terminal, car terminal, breakwater, dredging, and access roads. Phase 2 will involve the construction of additional container and car terminals and further dredging. The project also includes provisions for consulting services such as detailed design, tender assistance, and work supervision.

The loan has a 40-year repayment period and a 10-year grace period. Procurement for the project will be Japan-tied, prioritizing the utilization of Japanese technology and expertise.

This project is expected to play a crucial role in improving Indonesia's trade competitiveness by enhancing port infrastructure and facilitating smoother logistics operations. It will also contribute to job creation and economic development in the region.

The project is slated for completion in 2028 when the facilities are expected to be operational. Special Terms for Economic Partnership (STEP) will apply to this loan, emphasizing the transfer of Japanese technology and expertise to Indonesia.

This project underscores the strong bilateral relationship between Japan and Indonesia and Japan's commitment to supporting Indonesia's economic and social development.

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