Indonesia expects to finalise $560 mln rail loan from China
RAILWAYS & METRO RAIL

Indonesia expects to finalise $560 mln rail loan from China

Indonesia is poised to sign a long-anticipated $560 million loan agreement with China during the upcoming Belt and Road Forum (BRF) in Beijing, as confirmed by an Indonesian official on Monday. This substantial loan is earmarked to address the escalating costs associated with Indonesia's inaugural high-speed railway project.

President Joko Widodo inaugurated the $7.3 billion railway earlier this month, which links the capital city, Jakarta, with Bandung. However, the project faced funding uncertainties due to prolonged negotiations regarding the loan's terms.

The railway venture is a collaborative effort between Indonesian and Chinese state-owned companies but has encountered a cost overrun of approximately $1.2 billion, as reported by the Indonesian government.

Kartika Wirjoatmodjo, Deputy Minister of State-Owned Enterprises, expressed optimism about the loan's status, stating, ""Next week it should be done."" He further indicated that the formal signing of the loan agreement may occur during the Belt and Road Forum, where both President Widodo and Chinese President Xi Jinping are expected to jointly inaugurate the commercial operations of the high-speed train.

This loan agreement underscores the significance of the Belt and Road Initiative (BRI) in fostering infrastructure development and connectivity projects, while also addressing the financial challenges that occasionally arise during their implementation.

Indonesia is poised to sign a long-anticipated $560 million loan agreement with China during the upcoming Belt and Road Forum (BRF) in Beijing, as confirmed by an Indonesian official on Monday. This substantial loan is earmarked to address the escalating costs associated with Indonesia's inaugural high-speed railway project.President Joko Widodo inaugurated the $7.3 billion railway earlier this month, which links the capital city, Jakarta, with Bandung. However, the project faced funding uncertainties due to prolonged negotiations regarding the loan's terms.The railway venture is a collaborative effort between Indonesian and Chinese state-owned companies but has encountered a cost overrun of approximately $1.2 billion, as reported by the Indonesian government.Kartika Wirjoatmodjo, Deputy Minister of State-Owned Enterprises, expressed optimism about the loan's status, stating, Next week it should be done. He further indicated that the formal signing of the loan agreement may occur during the Belt and Road Forum, where both President Widodo and Chinese President Xi Jinping are expected to jointly inaugurate the commercial operations of the high-speed train.This loan agreement underscores the significance of the Belt and Road Initiative (BRI) in fostering infrastructure development and connectivity projects, while also addressing the financial challenges that occasionally arise during their implementation.

Next Story
Infrastructure Urban

CCI Approves Bajaj Finserv’s Acquisition of Bajaj Allianz Firms

The Competition Commission of India (CCI) has approved the proposed acquisition of Bajaj Allianz Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, and Bajaj Allianz Financial Distributors Limited by Bajaj Finserv Limited, Bajaj Holdings and Investment Limited, and Jamnalal Sons Private Limited.The combination involves acquiring 26 per cent paid-up equity share capital of Bajaj Allianz Life Insurance and General Insurance companies by Bajaj Finserv Limited (BFS), Bajaj Holdings and Investment Limited (BHIL), and Jamnalal Sons Private Limited (JSPL) from Allianz SE..

Next Story
Infrastructure Urban

PM to Inaugurate 103 Amrit Stations Including Five in Karnataka

The Hon. Prime Minister Shri Narendra Modi will inaugurate 103 Amrit Stations through video conference on 22 May 2025 at Bikaner, Rajasthan. Among these, five railway stations in Karnataka—Munirabad, Bagalkot, Gadag, Gokak Road, and Dharwad—will be launched.These stations, spread across 86 districts in 18 States and Union Territories, have been developed at a cost exceeding Rs 11 billion under the Amrit Bharat Station Scheme. Over 1,300 stations are being upgraded nationwide with modern facilities reflecting regional architecture and enhanced passenger amenities.Gadag Railway Station redev..

Next Story
Technology

Himachal Pradesh Hosts Workshop on AI for Good Governance

The Department of Digital Technologies and Governance (DDT&G), Government of Himachal Pradesh, in collaboration with the National e-Governance Division (NeGD) under the Ministry of Electronics and Information Technology (MeitY), organised a state-level workshop titled “AI for Good Governance: Driving Transparency, Efficiency, and Impact” on 20 May 2025 at the HP Secretariat, Shimla.The workshop aimed to enhance AI adoption in governance by sensitising over one hundred senior officials from various state departments. It highlighted AI’s role in data-driven policymaking, optimising ser..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?