China-backed high-speed railway connecting Jakarta and Bandung called "Whoosh" is parked at Halim station in Jakarta, Indonesia on Oct 2, 2023. during the Belt and Road Forum in Beijing next week, an Indonesian official said on Monday , with the amount slated to cover rising costs for its first high-speed railway project.
The project, being built by a consortium of Indonesian and Chinese state companies, is running US$1.2 billion over budget, according to Indonesia's government. He said the signing may take place during the BRF, when Widodo and Chinese President Xi Jinping are expected to virtually inaugurate the bullet train's commercial operations.The new loan is in addition to a 2017 loan worth US$4.55 billion that the China Development Bank has approved for the consortium.
China has also asked for government guarantee for the additional loan, which the Indonesian government accepted in September after initially rejecting it.Asked how the money would be spent, Indonesia's state railway company Kereta Api Indonesia, which leads the consortium behind the project, and spokesperson for the consortium did not respond to Reuters' request for comment.
Source: Loan Digest (loandigest.net)