Indonesia will seek more financing from China to cover most of the $2 billion in cost overruns for the Jakarta-Bandung high-speed rail project, which is part of Beijing’s Belt and Road Initiative infrastructure plan, local media reported, citing a project official.
The 88-mile (142-kilometer) rail project connecting Jakarta and Bandung was projected to cost roughly $4.57 billion when it was awarded to a consortium of Chinese and Indonesian state firms—namely PT Kereta Cepat Indonesia China (KCIC)—in 2015. But costs have since ballooned to about $7.9 billion because of escalating raw material prices and other unforeseen costs.
