The Jakarta Post
The Indonesian-Chinese consortium for the Jakarta-Bandung high-speed railway, PT Kereta Cepat Indonesia China (KCIC), aims to secure a US$3.94 billion loan from the Chinese Development Bank (CDB) this November, a consortium member said.
KCIC member, state-owned construction firm PT Wijaya Karya president director Bintang Perbowo, said that the CDB required at least 90 percent of the land for the project to be procured.
As of October 82 percent had already been secured, Bintang said, adding that he was sure it would obtain the required amount by the end of November.
"We have nearly met the requirements and expected to seal the loan contract at the end of this month," he told The Jakarta Post during the 2016 Indonesia Infrastructure Week in Jakarta on Wednesday.
He added that the actual construction would begin next year after the loan was secured.
KCIC president director Hanggoro Budi Wiryawan said 60 percent of the loan would be in US dollars and carry an annual interest rate of 2 percent, while the remaining 40 percent would be in Chinese yuan with a 3.4 percent per annum interest. The loan would cover 75 percent of the total $5,29 billion project cost. The remaining $1.32 billion would be paid for out of equity.
KCIC consisted of four Indonesian state-owned enterprises (SOEs): Wijaya Karya, toll road operator Jasa Marga, agriculture firm Perkebunan Nusantara VIII and railway company PT Kereta Api Indonesia, and five Chinese SOEs. (jun)
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