The Indonesian-Chinese consortium building a high-speed rail link between the capital Jakarta and Bandung, a textiles hub, expects to earn USD 18 billion from developing four satellite towns and industrial centers.
The joint venture to build the high-speed railway was first signed in October 2015. However, the construction was only started in 2018, after a-three-year long delay over land ownership disputes. Currently 15% of the line has been completed, while 60% is expected to be finished by the end of 2019.
Once completed, the high-speed rail will be able to travel up to 350 km/h and will be able to shorten a once three hours journey ride to a mere 45 minutes. Tickets are planned to be priced at about USD 14 (or equivalent to IDR 200,000).
The Indonesian-Chinese consortium is composed by China Railway Corp and state-owned Indonesian PT Wijaya Karya Tbk. The project is financed by China’s Development Bank for USD 4.5 billion.
(Sources: Reuters; The Straits Times; Investing; Telegraph)