New China $5 Billion High-Speed Rail project in Indonesia
Rail News
As Indonesia tries to boost its economic growth, $5.5 billion railway line construction project to upgrade infrastructure will be developed by China
Indonesian President Joko Widodo is open to foreign investments, as he is planning to revive country's economy by building infrastructure, due to latest economic slowdown.
According to new business agreement, Indonesia’s first high-speed train project between Jakarta and Bandung will be build by China Railway International Co. Ltd and several joint venture Indonesian companies, with the help of China Development Bank funding, without any Indonesian state guarantees.
Sahala Lumban Gaol, chairman of the Indonesian joint venture commented about the latest signed agreement:
“This is a new episode that means in the future Indonesia’s infrastructure development won’t burden the government and state budget.
“We hope this new company will compete outside Indonesia for high-speed railway projects.”
The Chinese investment fund will cover three quarters of the total costs and, by the end of the railway line development, China will hold 40% of the project, according to Xie Feng, China’s ambassador to Indonesia. Developers plan to use as much Indonesian materials, technology and workers as possible.
The project will start next year and is expected to be delivered by the end of 2018. The trains will run at a 250 kms/h speed and the rail line will have 8 stops, in passenger trip fares of around $16.
Indonesian President Joko Widodo is open to foreign investments, as he is planning to revive country's economy by building infrastructure, due to latest economic slowdown.
According to new business agreement, Indonesia’s first high-speed train project between Jakarta and Bandung will be build by China Railway International Co. Ltd and several joint venture Indonesian companies, with the help of China Development Bank funding, without any Indonesian state guarantees.
Sahala Lumban Gaol, chairman of the Indonesian joint venture commented about the latest signed agreement:
“This is a new episode that means in the future Indonesia’s infrastructure development won’t burden the government and state budget.
“We hope this new company will compete outside Indonesia for high-speed railway projects.”
The Chinese investment fund will cover three quarters of the total costs and, by the end of the railway line development, China will hold 40% of the project, according to Xie Feng, China’s ambassador to Indonesia. Developers plan to use as much Indonesian materials, technology and workers as possible.
The project will start next year and is expected to be delivered by the end of 2018. The trains will run at a 250 kms/h speed and the rail line will have 8 stops, in passenger trip fares of around $16.
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