Indonesia's High-Speed Rail Project: Messed Up Diplomatic Triangle
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 Published On Feb 20, 2021

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- Today's topic was one of the most requested by our viewers so far: an interesting, mega railway project, which is currently under contruction - Jakarta-Bandung High-Speed Railway Line in Indonesia.

It is a high-speed rail line in the length of 142,3 km (88,4 mi), that will connect Indonesia’s capital Jakarta with Bandung, one of the major industrial hubs in this country.

In addition to its complexity, this project is super interesting due to the fact it represents another amazing example of how geopolitics influence the railways and the example of competition game between two Asian powerhouses - China and Japan. In this case, over the greater strategic influence in the region of Asia-Pacific.

For the construction, management, future daily operation and maintenance of Jakarta-Bandung high-speed rail line, the joint venture Kereta Cepat Indonesia China (KCIC) was formed, consisting of Chinese and Indonesian consortiums.

On October 16th 2015, Chinese and Indonesian companies that are part of these consortiums officially signed a deal to proceed with the construction. The project was estimated at $5.5 billion, while China Development Bank (CDB) gave a commitment to fund 75% of this amount, with the loan on the period of 40 years, while the rest will be secured by the joint venture partners.

As Indonesian government was not required to provide any financing, in accordance with the agreement, it will take over the ownership of the line and all the assets only at the end of the 50-year period.

This project is marked as a turning point in the modernization of the Indonesian public transportation system, and it serve four main stations (Jakarta, Karawang, Walini and Bandung), with the trains running at 350 kmh, cutting the travel times beetween the two cities from 3 hours to 40 min.

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#Railways #​Indonesia​ #Trains

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