The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Lee Duk-hoon, “Korea Eximbank”) announced on March 24 that it signed a USD 85 million EDCF loan agreement with Indonesia to fund the country’s Vatam Sewerage Construction Project and High-Speed Police Patrol Boat Procurement Project with USD 50 million and USD 35 million, respectively.

* The Economic Development Cooperation Fund (EDCF) was established by the Korean government in 1987 to promote economic exchanges and to assist developing countries in achieving industrialization and economic stability through the provision of long-term, low-interest credit. Korea Eximbank currently manages the fund as its trustee. As of the end of February 2014, EDCF has supported 309 projects in 52 countries with KRW 10.19 trillion (commitment basis).

Executive Director Yim Seong-hyeog of Korea Eximbank’s EDCF Operations Group met with General Director Robert Pakpahan of the Indonesian Ministry of Finance and signed the loan agreement for the projects at the Ministry of Finance in Jakarta, Indonesia on March 21.

The Vatam Sewerage Construction Project is aimed at building a modernized sewage treatment system including sewage treatment plants, intermediate pumping stations, sewage ducts, an integrated operation management system, and sewage sludge composting facilities in the city of Vatam, Indonesia.

This project is Indonesia’s second EDCF-funded project in the Vatam area following the Vatam Electronic Government Project. It is expected to have a significant impact on the public health and hygiene of local residents as well as on the development of the local economy.

The Vatam Island, which has an area of 415 km2 and a population of 1 million, was chosen as a Special Economic Zone in 1989 by the Indonesian government and then as a Free Trade Zone in 2000 thanks to its geographical proximity to Singapore.

The High-Speed Police Patrol Boat Procurement Project is a public procurement project whereby the Indonesian coastal police seeks to procure five latest-model high-speed boats.

This project is the second EDCF project undertaken by the Indonesian police following the Police Mobile Communications Network Project, and is expected to enhance the government’s crime prevention and law enforcement capabilities in its territorial seas.

After the signing ceremony, Executive Director Yim Seong-hyeog remarked, "Indonesia is the leading country in ASEAN and a G20 member with a lot of influence among its Southeast Asian neighbors. EDCF’s support to Indonesia would be helpful not only for Korean companies entering the country but also for strengthening Korea’s cooperation with other ASEAN countries."