INDUSTRY.co.id - Jakarta - The government will begin to undertake rapid train projects in March 2018. For the initial phase, the government will disburse US $ 500 million. The fund comes from a loan from China Developement Bank (CDB).

"For the rapid railway project of Jakarta-Bandung, land acquisition has been done along 55 kilometers (km) of the total path along the 100 km. Now it has been submitted to contractors from China, "said Rini Soemarno, Minister of SOEs, Monday (19/02/2018).

Rini explained, in the early stages of this project, the government will pour funds of US $ 500 million. Until now, the government still uses the existing capital for the disbursement of funds at the beginning of the work.

"Meanwhile, the process of fund disbursement from China Development Bank (CDB) is now entering the finalization phase of the completion of banking documents. We hope that the first phase of funding will be completed in March, "said Rini.

Rini said the total first phase fund disbursed for the US $ 500 million rapid railway development project is part of the loan to CDB totaling US $ 4.9 billion.

Rini said the government loan to finance the rapid train is a direct loan from joint venture. "About 60% of the total loans come from government funds and another 40% from Chinese state funds," Rini said.

"The construction of the Jakarta-Bandung railway project is stretching from its original schedule. That is because constrained by land acquisition. Because, until now there are still many land acquisition that must seek approval to the Ministry of Forestry, "concluded Rini. (Abraham Sihombing)