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Monday, 26 June, 2006 | 14:48 WIB

TEMPO Interactive, Jakarta: The government will cancel several project loans that have already been approved with creditors.

Lukita Dinarsah Tuwo, Deputy Head of the National Development Planning Agency (Bappenas), said the loans to be cancelled are those for completed projects but there are funds remaining that will not be used.

“Therefore, we will cancel what is left over of the loans,” said Lukita in Jakarta, last weekend.

According to him, what is left over varies from project to project, with one amounting to US$5 million and another US$10 million.

In total, the amount vould reach more than hundreds of millions of US dollars.

In addition, what is left over of a loan from the Japan Bank for International Cooperation for the Ciliwung-Cisadane waterway retention wall, Public Works Department, amounts to US$250 million.

Lukita said the cancellation requires a lot of time.

In addition to convincing the creditors, Bappenas must also face the interests of the department or the institutions which used the funds.

“The process takes time because sometimes departments still want to use the funds,” Lukita said.

Agus Supriyanto