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China to Build $5 Billion High-Speed Rail Line in Indonesia

  • Deal comes after earlier Chinese, Japanese bids were scrapped
  • Construction to start in early 2016, line to open in 2019
A train loaded with passengers heads to central Jakarta during rush hour.
Photographer: Romeo Gacad/AFP/Getty Images
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China won the rights to build a $5.5 billion railway line in Indonesia as the Southeast Asian nation tries to upgrade its infrastructure to drive economic growth.

China Railway International Co. Ltd and a consortium of Indonesian state companies will build the rail line from Jakarta to Bandung, and plan to compete for other projects in the region, Sahala Lumban Gaol, chairman of the joint venture, said Friday in Jakarta. Three quarters of the funding will come from China Development Bank, and the project won’t carry an Indonesian state guarantee, he said.