Indonesia waits for Chinese loan

Indonesia waits for Chinese loan

Attendants pose for a photo beside the models of a high speed train during the China High Speed Railway on Fast Track exhibition in Jakarta, Indonesia, August 13, 2015 in this file photo taken by Antara Foto. Indonesia is expected to break ground on its first high-speed rail line this week. Photo: REUTERS/Rivan Awal Lingga/Antara Foto/Files.

Jakarta, Indonesia January 26 2017 – The Indonesian government is expecting a $4.1 billion loan from the China Development Bank (CBD) to be disbursed by March.

The money is needed to help finance the construction of Indonesia’s first high-speed railway. Kereta Cepat Indonesia China (KCIC), a consortium of both countries’ state-owned firms is carrying out the work. The group is made up of construction firm Wijaya Karya, toll road operator Jasa Marga, railway operator Kereta Api Indonesia and plantation firm Perkebunan Nusantara (PTPN) VIII, as well as a group of Chinese state-owned enterprises.

The loan will provide over two thirds of the $5.5 billion needed to complete the railway project, with the remainder coming from the group’s members.

The 150 kilometre railway will connect the capital city Jakarta with the third largest city of Bandung.

Beijing won the contract to build Indonesia’s first high-speed railway in 2015, with a groundbreaking ceremony taking place early last year. Feasibility and financing problems have caused delays since then however.

2017-01-26T03:41:48+01:00 January 26th, 2017|News|