The Indonesian government plans to borrow at least another USD 300 million from the Asian Infrastructure Investment Bank (AIIB) to finance road and railway development in Kalimantan.
The government will use the loan to buy machines to lay down railway track ballasts in Kalimantan, Wismana Adi Suryabrata, the infrastructure deputy at the National Development Planning Agency (Bappenas), said.
Another project fo which the loan would be used is a highway development in Derawan Islands in East Kalimantan.
“The two projects will cost more than $300 million. We’re still working on the proposal for the loan … [which will have] a tenor of 15 years with a five-year grace period,” said Dewo Broto Joko Putranto, director for international development cooperation at Bappenas.
The government may eventually opt for a shorter term on the loan to lower the interest.
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