TOKYO (Kyodo) -- Japan will provide Indonesia with an additional 83.4 billion yen ($530 million) in low-interest loans for an ongoing project to build a new international seaport east of Jakarta.

The loans are for the development of Patimban Port in Subang Regency in Indonesia's West Java Province and it is hoped the port, set to be completed in 2028, will boost the fast-growing Southeast Asian country's exporting capacity amid surging demand for shipments, Japan's Foreign Ministry said.

The loan deal, signed in Jakarta, came a day before a summit meeting on Jan. 11 between Japanese Prime Minister Shigeru Ishiba and Indonesian President Prabowo Subianto in Jakarta, where they agreed to deepen collaboration in fields such as security, economy and human resource development.

Located about 120 kilometers east of Jakarta, the planned container and car terminal port is expected to disperse the traffic flow and ease heavy congestion on roads to the existing Tanjung Priok Port, a major export base situated in the capital city's north, the ministry said.

The planned port aims to "reinforce the capital area's logistics functions, and therefore contribute to further economic growth in Indonesia by improving its investment environment," the Japanese ministry said in a recent press release.

The new port's location is strategic for many Japanese manufacturers with production bases in the eastern part of Jakarta that have struggled due to bad access to the Tanjung Priok Port, the ministry said.

Japan has already extended loans of about 190 billion yen since 2017 for the building of Patimban Port, where construction began in 2018, according to the Japan International Cooperation Agency. The port started operating partially in December 2020.