The Japan Bank for International Cooperation (JBIC) has decided to develop concrete plans for financial support for the Government of the Republic of Indonesia (GOI), after a basic agreement was reached on February 21 between Japanese Parliamentary Secretary for Finance, Mr. Shinsuke Suematsu, and the Indonesian Minister of Finance, Dr. Sri Mulyani Indrawati on the following financial support of up to JPY equivalent to US$1.5 billion through JBIC.
|～Summary of financial support expressed by Japan～
- Financial support will be provided to Indonesia in the form of a guarantee by JBIC to the GOI in issuing yen-denominated foreign bonds in the Japanese capital market (Samurai Bonds*1).
- Japan is also ready to take part in a joint contingent loan facility through JBIC for Indonesia which is being elaborated by Indonesia and its development partners, including the World Bank, Asian Development Bank, and other countries.
The foregoing support is expected to contribute to the stability of the Indonesian economy and the stabilization of the international financial system.
As an effort towards "responding to disruptions in the financial order in the international economy," one of the fields for accomplishing its mission, JBIC intends to commit itself to addressing the current global financial crisis by mobilizing a variety of financial tools, including this financial support.
- *1 Samurai bonds are yen-denominated bonds issued in Tokyo by a foreign government or company.