The government of the People's Republic of China on Friday agreed to grant US$3.6 million and provide US$400 million as a soft loan to the Indonesian government.

The US$3.6 million assistance brought the total Chinese grant to Indonesia to US$27.5 million, Indonesian Foreign Minister Hassan Wirajuda said in a joint press briefing along with visiting Chinese Presidential special envoy and State Councilor Tang Jiaxuan.

The grant is to be used for enhancing economic cooperation between the two countries and the soft loan to finance the electrical and gas power plant at the Labuhan Angin, the building of a 158 km double-track railway between Cirebon and Kroya, and the construction of the Surabaya-Madura island bridge, Wirajuda said.

Wirajuda and Tang Jiaxuan also witnessed the signing of a Memorandum of Understanding on the two types of assistance.

The Chinese government also promised to provide other soft loan assistance to Indonesia if needed, Hassan said. 

(Xinhua News Agency November 6, 2004)