From Russia with cash: East Kalimantan Governor Awang Faroek (second left) and Kalimantan Rail PTE Director Andrey Shigaev sign a memorandum of understanding (MoU) in Jakarta on Tuesday over rail development and construction in East Kalimantan. JP/P.J. LeoRussia’s state railway firm Joint Stock Company (JSC) Russian Railways will build a railway line in East Kalimantan to deliver coal, in an investment of approximately US$2.4 billion, an official says.

East Kalimantan Governor Awang Faroek said in Jakarta on Tuesday that the construction was expected to commence in 2013, while the operation would be started in 2017.

“The first stage of the railway line will be meant for coal, but hopefully we can also use it for crude palm oil, plantation harvests, rubber and people,” he said following the signing of a memorandum of understanding (MoU) document with the Russian comp...