A consortium of Indonesian and Chinese companies building Indonesia’s first high speed railway has signed a USD 4.5 billion loan with China Development Bank. The head of the consortium, Hanggoro Budi Wiryawan, and the chairman of China Development Bank, Hu Huaibang, signed the loan in Beijing, during a bilateral meeting between Indonesian President Joko “Jokowi” Widodo and China’s President Xi Jinping.
The loan would cover 75 percent of the total costs, which are expected to reach USD 6 billion. Indonesia selected China to build the country’s first fast-train rail link connecting its capital Jakarta to the textile hub of Bandung in 2015.
This year, a consortium of Chinese and Indonesian firms signed a contract with PT Kereta Cepat Indonesia China (KCIC), a firm tasked with monitoring the high-speed train project linking Jakarta to Bandung, for the construction phase of the project. The 142-km line is expected to be built in 3 years, allowing trains to run at speeds of 350 km/h. For the needed rolling stock, CRRC Sifang Co. will supply eleven 8-unit high speed trains.
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