China has offered IDR80 trillion (US$6 billion) worth of loans to finance the construction of two major rail projects in Indonesia, it has been revealed.
The Antara news agency reported a senior official with Indonesia’s Transport Ministry as saying that the Chinese government is offering to provide a IDR40trn loan for the Trans-Sulawesi Railway project and the same amount for the Trans-Sumatra line.
“They have agreed to extend loans worth IDR40 trillion for Trans-Sumatra and Trans-Sulawesi railway projects each,” Prasetyo Boeditjahjono, Indonesia’s director general of railways was quoted saying.
He added however, that China is still considering the results of feasibility studies conducted by the Transport Ministry.
“They will review the results of the studies conducted more than five years ago,” Prasetyo stated, adding that he expects China to complete its study of the projects “in less than one year”.
The Trans-Sumatra Railway will be a 2,168km line railway linking Aceh in the far north of Sumatra with Lampung in the south. The Trans-Sulawesi line will stretch 1,686km from Makassar in the southwest of the island to Manado in the northeast.