The Japanese government and the Japan International Cooperation Agency (JICA) will provide emergency loan worth 20 billion yen (over 206 million USD) to Indonesia through the nation's official development assistance programme.
A contract to this effect was signed on Mar. 24 between representatives from JICA and the Indonesian government, the Yomiuri Shimbun said.
It is the first time the government has provided such emergency aid to developing nations hit by financial woes through ODA since 1997, when the currency crisis wracked Asia.
Regular ODA to finance specific public works projects is given depending on the progress of projects such as bridge construction.
However, the latest emergency assistance is aimed at providing a lump sum that allows Indonesia to take urgent measures, such as an economic stimulus programme, as well as moves to boost mid- and long-term economic growth.
Together with Indonesia, the Philippines will sign a contract with JICA to receive a loan of about 10 billion yen by the end of this month.
The Japanese government also plans to provide assistance to other developing countries, mainly in Asia./.