Consortium inks US$4.5b loan deal with China bank
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
Indonesia is trying to lure investors for a US$450 billion infrastructure drive to revive economic growth.