## Jakarta Mass Rapid Transit System Project (Indonesia)

Supported by robust domestic consumption and private investments, in the first half of 2008 Indonesia enjoyed an economic growth rate of over 6.3%. However, this growth is slowing down due to the impact of the financial and economic crisis that took place in the latter half of 2008. Therefore, it has become important challenges to maintain sustainable development and create employment opportunities are becoming important issues to be handled by implementing secure fiscal policies and developing economic infrastructure for improving the investment environment. Japan assists the construction of a mass rapid transit system through an approximately ¥48.1 billion ODA loan in order to ameliorate the escalating traffic congestion in the Jakarta metropolitan area. Once the railway is completed, the time necessary to travel from central to southern Jakarta is expected to reduce from the current two-hour trip to about 30 minutes. These efforts are anticipated to boost passenger transportation capacity and improve the investment environment.

### 2. South Asia

Bilateral ODA for South Asia in 2008

Approximately US$836.52 million (approximately US$2,734.85 million)

Approximately 12.1% of total bilateral aid (approximately 18.4%)

The South Asian region includes countries that have high rates of economic growth and gigantic economic potential, particularly India, the world's largest democracy. Accordingly, this region's position in the international community is becoming more prominent. South Asia is located on the marine transport route linking Asia with the Middle East, and thus is strategically important to Japan. It is also an important region from the viewpoint of dealing with global environmental issues. In addition, the region is of great concern to the international community, including Japan, due to the issue of weapons of mass destruction possessed by India and Pakistan and of its role in international undertakings against terrorism and extremism.

However, the South Asian region still faces a large

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For harnessing the economic potential of South Asia and alleviating the widening disparities between the rich and poor, Japan provides assistance to South Asia centered on developing socioeconomic infrastructure. Particularly in its relationship with India, a central presence in the region, Japan promotes cooperation in a wide range of fields based on the Strategic and Global Partnership, an alliance sharing basic values. These include politics and security, economic cooperation, and academic exchanges. India is the largest recipient country for Japanese ODA loans, where Japan advances the development of economic infrastructure, including power and transport, as well as the development of the social sector aimed at reducing poverty by improving the rural environment.

In regards to Pakistan, the Friends of Democratic number of issues to be addressed, including a serious lack of basic infrastructure, such as roads, railroads, and ports, growing populations, low school enrollment ratio in primary education, undeveloped water and sanitation facilities along with inadequate healthcare and medical facilities, insufficient maternal and child healthcare, and a lack of countermeasures against infectious diseases and the rule of law. Poverty reduction is a particularly serious issue, where 500 million of the region’s 1.5 billion population is living in poverty, making it one of the world’s poorest regions. South Asia is the second most important region behind Africa in aim to achieve the Millennium Development Goals (MDGs). (Note 40)

Pakistan Ministerial Meeting and Pakistan Donors Conference were held in Tokyo in April 2009. At the Pakistan Donors Conference, assistance totaling over US$5 billion from participating nations and organizations was announced for Pakistan to employ terrorism countermeasures and economic reform, whereupon Japan also announced that it would provide up to US$1 billion in aid to Pakistan.

In May 2009 in Sri Lanka, the more than 25-year battle between government forces and the Liberation Tigers of Tamil Eelam (LTTE) came to an end. Sri Lankan President Mahinda Rajapaksa announced that he would work to produce a political solution to ethnic reconciliation and work to develop the country. Japan provides aid to Sri Lanka while paying consideration to regional and ethnic balance in order