Chinese investment projects to remain unaffected by Natuna polemic

Chinese investment projects to remain unaffected by Natuna polemic

Indonesian Minister of Transportation Budi Karya Sumadi

Jakarta (ANTARA) - Indonesian Transportation Minister Budi Karya Sumadi made assurance that Chinese investment-funded transportation infrastructure projects will not be affected by the polemics on the Natuna waters, Riau Islands Province, embroiling China and Indonesia.

"There is no (effect). They (the projects) run smoothly," the minister stated after meeting Coordinating Minister for Political, Legal, and Security Affairs Mahfud MD, here, on Wednesday.

Although both the projects and the polemic involved China, the two matters must be separated, he remarked.

"I think we should separate them, yes, the Natuna matter and investment activities," he pointed out.

Indonesia has collaborated with China in various projects, including transportation infrastructure, such as for the development of the Jakarta-Bandung high-speed train stretching 142.3 kilometers long.

The project funding section comprises two, notably 75 percent, borne by the China Development Bank (CDB), and 25 percent of the shareholders' equity of the Indonesia-China Fast Train (KCIC).

As for KCIC shares, 40 percent is owned by five Chinese business entities, while 60 percent by four Indonesian state-owned companies (BUMN) grouped in PT Pilar Sinergi BUMN Indonesia.

Land acquisition for the Jakarta-Bandung fast train project is only at one percent and is expected to be completed in January 2020.

In addition to the Jakarta-Bandung fast train project, China has invested in various transportation infrastructure projects in Indonesia. Related news: China's act in Natuna to not instigate Indonesian Military: spokesman
Related news: Indonesia proposes special fund for investments under BRI


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