Indonesia To Transfer Control Of China-Funded High-Speed Railway

According to Nikkei Asia, Indonesia's finance minister said the country's sovereign wealth fund INA or another agency under his ministry will take control next week of the company that operates the $7.3 billion, China-funded high-speed railway between Jakarta and Bandung. Finance Minister Purbaya Yudhi Sadewa said the stake will be handed over on Sept. 15 and that authorities are weighing whether INA or Sarana Multi Infrastructure, a development financing arm under the finance ministry, will receive it. The new controlling stakeholder will be responsible for repaying the project's outstanding loan, while Chinese firms will retain 40% of the operator. Purbaya said China agreed to extend the loan tenor to 80 years after restructuring talks. He also said the railway will be extended by about 700 km east to Surabaya after the handover, but did not say how the expansion would be funded.