The new loan is in addition to a 2017 loan worth US$4.55 billion that the China Development Bank has approved for the consortium. That loan has a 40-year tenure, with a 10-year grace period, and an interest rate of 2 per cent per annum
Indonesian officials have previously said Jakarta was seeking similar terms for the additional loan, but China had offered a higher interest rate of between 3.4 per cent to 4 per cent.
China has also asked for government guarantee for the additional loan, which the Indonesian government accepted in September after initially rejecting it.
The terms of the new loan have yet to be made public.
Asked how the money would be spent, Indonesia’s state railway company Kereta Api Indonesia, which leads the consortium behind the project, and spokesperson for the consortium did not respond to Reuters’ request for comment.
China’s BRF will be held in Beijing next week to mark the 10th anniversary of the Belt and Road Initiative.
Source: CNA
