Indonesian National Development Planning Minister Bambang Brodjonegoro and President/Chairman Korean Eximbank Sung -soo Eun at a bilateral meeting in Nadi, Fiji, on Thursday (05/02). Photo by The Ministry.

JAKARTA (TheInsiderStories) – Responding to the request of the Indonesian National Development Planning Board, Korean Eximbank intends to provide untied soft loans under the name of the Economic Development Partnership Facility (EDPF) to the country, said the minister at a bilateral meeting with President/Chairman of the Korean Eximbank Sung-soo Eun in Fiji, last week.

Minister Bambang Brodjonegoro said the policy was the commitment of the two countries to enhance inter-government cooperation in developing alternative funding schemes that were suitable and feasible to apply to infrastructure and construction projects in Indonesia. At the same time, he continued, to encourage Korean investors to take part in facilitating infrastructure investment in Indonesia.

“At present, Korean Eximbank is preparing a memorandum of understanding for the implementation of the EDPF scheme between the Korea Ministry of Economy and Finance and Indonesian Ministry of Finance,” he said in an official statement.

According to him, this step is in line with the policies of Korean President Moon Jae-in who launched the New Southern Policy in 2018 as a strategic policy to expand the commitment of the Korean Government in establishing cooperation with ASEAN countries, including Indonesia.

Brodjonegoro explained, Korean Eximbank is currently carrying out two important functions, one of which is ensuring the implementation of Official Development Assistance funding from the Korean Government through the Economic and Development Cooperation Fund in the form of binding soft loans or binding soft loans.

That means, he said, the Korean government must ensure the implementation of funding for development cooperation from the lender in Indonesia.

“We really appreciate Korea Eximbank and EDCF’ plan to bring Korea-Indonesia cooperation to a higher level, in this case, expand the scope of cooperation and increase the number of loans,” said the minister.

Therefore, he stressed that as the executor of development cooperation funding between Indonesia, South Korea, and commercial export-import funding institutions, the two countries could achieve Korean total funding commitments in the 2016-2020 period worth of US$600 million.

“To date, $129 million has been allocated for the Engineering Service for Coastal and River project and the project of the Urgent Rehabilitation of Strategic Irrigation for Western Indonesia,” he said.

Meanwhile, there are two projects currently under preparation under the agreement, namely the $150 million e-Government or data center project and $68 million Aid to Navigation.

Indonesia and South Korea, he suggested, must optimize all available cooperation and funding schemes by combining both optimizations, such as the one valued at $75,89 million at the Karian Dam and Water Conveyance Project in Lebak, Banten, which was carried out by Daelim Industrial contractors Co., Ltd. with Indonesian contractors PT Wijaya Karya Tbk (IDX: WIKA) and PT Waskita Karya Tbk (IDX: WSKT).

Written by Daniel Deha, Email: daniel@theinsiderstories.com