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Home >> World
UPDATED: 14:38, January 20, 2007
Indonesian president urges full use of Chinese loan
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Indonesian President Susilo Bambang Yudhoyono has called for efforts to switch the Chinese government's loan which had not yet been used up to other transportation infrastructure projects so that the fund could be used before it reached the deadline, a senior diplomat said.

"China has provided a loan of 800 million U.S. dollars, 200 million dollars of which to finance the construction of a Cirebon- Kroya double railway track has not been used," Antara news agency Saturday quoted Sudradjat, Indonesian ambassador to China, as saying after meeting President Yudhoyono here Friday.

He also said the money was not enough because the contractor who built the project said the cost has grown to 400 million U.S. dollars following a hike in the price of materials.

"So we need another 200 million dollars. But the President said if the fund could not be used as scheduled, there are options, namely, we provide more money or switch to other transportation infrastructure projects. We will talk this over with the Ministry of Transportation and the National Development Planning Board," he added.

The Indonesian government has spent the loan on building the Suramadu (Surabaya-Madura) bridge, Jatigede dam, Parit Baru Hydro Power Plant in Kalimantan and Coal-Fired Power plant in Medan.

Source: Xinhua


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