JAKARTA - Indonesia’s state-owned railway firm PT KAI said on Tuesday it has received a 3.2 trillion rupiah capital injection from the government to help a consortium of Indonesian and Chinese state companies complete
The capital top up will partially finance rising costs to build a 142km high-speed rail line linking the capital Jakarta with the textile hub of Bandung, West Java.an additional US$1.45 billion was neededCompanies involved in the consortium, called KCIC, were expected to increase their equity participation and Indonesia would also seek about US$1 billion through an additional loan from the China Development Bank to cover the cost overrun.
Indonesian state companies, including KAI and Wijaya Karya , control 60 per cent of KCIC, while China Railway Engineering Corporation and other Chinese companies hold the remaining stake. when a work train careened off the tracks, state news agency Antara reported, citing China’s ambassador to Indonesia Lu Kang, who said the incident did not compromise the safety of the railway.More On This Topic