Indonesia Turns to State Budget for Rail Project on Cost Overrun
A section of elevated track for the Jakarta-Bandung High-Speed Railway under construction in Bekasi, West Java, Indonesia.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Indonesia plans to allocate the budget to help fund the Jakarta-Bandung fast train project as investment costs jump, reversing a decision six years ago to not use state money when it granted the contract to a China-led consortium.
In a decree signed by President Joko Widodo on Oct. 6, the government will inject more capital, or provide financial guarantees to the Indonesian state-owned companies that are part of the consortium led by China Railway International Co.