Govt Assures Chinese Investments Unaffected by Natuna Dispute
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8 January 2020 20:21 WIB
TEMPO.CO, Jakarta - Transportation Minister Budi Karya Sumadi assured that Chinese infrastructure projects in Indonesia will be unaffected by the rising tension over the Northern Natuna Sea border.
“It will have no effect, [the projects] will continue as it is,” said Budi Karya following a meeting with Coordinating Minister Mahfud MD at Cikini, on Wednesday, January 8.
He called for people to differentiate the Natuna dispute with ongoing investments from China.
China’s investment in Indonesia currently involves the construction of transportation infrastructures, namely the 142.3-kilometer railway system for the Jakarta - Bandung fast train project and an ongoing negotiation to construct a number of harbors in Indonesia.
The project’s financing is split into two with the China Development Bank (CDB) funding 75 percent of it and 25 percent is held by the Indonesia - China Fast Train’s (KCIC) shareholder equity.
KCIC shares are 40 percent owned by five Chinese business entities and 60 percent by the PT Pilar Sinergi BUMN Indonesia, which is a joint effort of Indonesian state-owned enterprises. According to the Transportation Minister, the fast train construction project is slated to be completed in January 2020.
ANTARA
