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China, Indonesia Collaborate to Build Bandung-Jakarta High-Speed Railway

| Jun 20, 2015 07:24 AM EDT

Indonesian President Joko Widodo meets with President Xi Jinping at Beijing in March, inviting Chinese firms to support infrastructure projects in Indonesia.

China and Indonesia have joined hands to build a 160-kilometer high-speed railway, following the signing of a letter of memorandum in June 15 between Sheng Guangzu, general manager of China Railway Corporation, and Rini Soemarno, Indonesia's minister for state-owned enterprises, according to a report by 21st Century Business Herald.

The signing of the letter of memorandum is seen as a significant step toward the advancement of the railway construction cooperation between the two countries, which was earlier initiated with the signing of the high-speed rail construction project by President Xi Jinping and Indonesian President Joko Widodo on April 22 in Jakarta.

A Japanese institution that is also participating in the project said that the plan was to build a 160-kilometer link between Indonesia's capital city of Jakarta and Bandung, China's third-largest city, which will cost an estimated $6 billion.

According to the report, the two countries will hold further talks to discuss the technical issues of the project.

The Chinese government said in a statement that it will actively support and take part in the construction of Indonesia's infrastructure, which will include airports, highways, railways, ports, piers, dams, and bridges, as well as provide financial aid to the country through various conduits.

Soegeng Rahardjo, Indonesia's ambassador to China, had earlier said that Indonesia needs a high-speed railway that will provide more efficient travel not only to Jakarta but also to Surabaya, the country's second-largest city.

Indonesia had expressed intention to build a railway line between the two cities. It has attracted many foreign investors, including some from China. The country has also developed a plan to construct 860 kilometers of high-speed railway linking Indonesia's major cities of Jakarta, Bandung, Cirebon and Surabaja, but progress of the project was limited due to technological issues and financial concerns.

China is continuing with its plan to promote its high-speed railways technology overseas. It has initiated agreements on high-speed rail construction projects in Singapore, Malaysia, Thailand, Russia and Mexico, according to the report.

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