China, Russia Interested As Indonesia Explores Trans-Kalimantan Railway Investment

Indonesia is exploring foreign investment for the Trans-Kalimantan railway, with China and Russia among the countries that have shown interest, Transportation Minister Dudy Purwagandhi was quoted as saying by Indonesia’s official Antara news agency.

China interest after high-speed rail completion

The project under consideration is a 2,772km (1,722 mile) railway network through Kalimantan, a vast and resource-rich region of Indonesia.

State media and analysts said Indonesia is considering Chinese investment to help build the network.

The discussions follow the completion of Southeast Asia’s first high-speed line between Jakarta and Bandung.

That earlier project forms an important backdrop because analysts said the financial strains linked to the high-speed line could shape how any future commercial agreements are negotiated.

Caution over future agreements

Analysts said future deals were likely to be negotiated cautiously.

They pointed not only to the financial issues around the Jakarta-Bandung high-speed line, but also to the challenges that stalled a proposed underground metro project in Bali, described as a congested tourist province.

The government’s current position, according to the Antara-cited statements, is that it is “exploring” potential foreign investment rather than announcing a final agreement for the Trans-Kalimantan railway network.

That leaves the project at an early investment-discussion stage, with foreign interest acknowledged but no commercial agreement described in the available statements.

Source: South China Morning Post