The loan agreement was signed by Director General of Asia Pacific and Africa of the Foreign Office Desra Percaya and Japan`s Ambassador to Indonesia Masafumi Ishii here on Wednesday.
Councillor for Economy at the Japanese Embassy Shigemi Ando said the loan is a form of Japanese support for the government of Indonesia to facilitate transport in Jakarta.
"The Indonesian Government has shown strong commitment to providing efficient public transport with the MRT plan now in the final phase," he said.
The loan for 40 years with an annual interest of 0.1 percent would be used to finance the construction of an eight- kilometer track between the station of Bundaran Hotel Indonesia (HI), Central Jakarta and Kampung Bandan, North Jakarta.
The fund also would be used for development of first phase track between Lebak Bulus, South Jakarta and Bundaran HI, to be completed in December 2018.
Ando said the size of the loan fund is based on a feasibility study carried out by the Japan International Cooperation Agency (JICA).
Construction of the MRT track in the second phase is to be completed in 2035.
Reporting by Azizah Fitriyanti
Editing by A Saragih
Reporter: Antara
Editor: Yosep Hariyadi
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