Indonesia: Jakarta – Bandung Fast Train Concession Agreement Signed

Image courtesy of China Railways

Following an abortive attempt to begin construction of the Jakarta – Bandung high-speed railway line in January of this year, a concession agreement has been signed between Kereta Cepat Indonesia China (KCIC) and the Ministry of Transportation. The contract provides for a 50 year period of operation after which the railway will be transferred to the Government of Indonesia.

KCIC is comprised of Pilar Sinergi BUMN Indonesia (a consortium of Wijaya Karya, Kereta Api Indonesia, Jasa Marga, and Perkebunan Nusantara VIII) and China Railway International Co Ltd.

The $5.1billion project relates to a 142km route between the capital city and Bandung in the south-east of the country. The line will run trains at 150km/h, with 73km of the route on elevated tracks and 17km of it in tunnels.

The project will be part funded by the China Development Bank. The construction is expected to take around three years and employ nearly 40,000 people, with an additional 48,000 employees required for peripheral construction, property and infrastructure projects over the next 15 years.

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