Con­sor­tium inks US$4.5b loan deal with China bank

New Straits Times - - Business -

JAKARTA: A con­sor­tium of In­done­sian and Chi­nese com­pa­nies build­ing In­done­sia’s first high­speed rail­way has signed a US$4.5 bil­lion (RM19.8 bil­lion) loan with China Devel­op­ment Bank, said the govern­ment yes­ter­day.

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 Wi­dodo and China’s Pres­i­dent Xi Jin­ping on Sun­day, ac­cord­ing to a state­ment is­sued by Joko’s of­fice.

Joko was in Bei­jing to at­tend the Belt and Road Fo­rum for In­ter­na­tional Co­op­er­a­tion.

In­done­sia picked China over Ja­pan to build the coun­try’s first fast-train rail link con­nect­ing its cap­i­tal to the tex­tile hub of Ban­dung in 2015.

In the same year, sev­eral In­done­sian state-owned com­pa­nies, in­clud­ing Wi­jaya Karya and Jasa Marga, formed PT Kereta Cepat In­done­sia-China, a con­sor­tium with China Rail­way In­ter­na­tional Co Ltd, to build the pro­ject.

The loan would cover 75 per cent of to­tal costs, which are ex­pected to reach US$6 bil­lion, Hang­goro was quoted by Tempo.co as say­ing.

Joko’s of­fice said In­done­sia was open to fur­ther co­op­er­a­tion in China’s Belt and Road ini­tia­tives.

In­done­sia, South­east Asia’s big­gest econ­omy, is try­ing to lure in­vestors for a US$450 bil­lion in­fra­struc­ture drive to re­vive eco­nomic growth. Reuters

BLOOMBERG PIC

In­done­sia is try­ing to lure in­vestors for a US$450 bil­lion in­fra­struc­ture drive to re­vive eco­nomic growth.

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