The high-speed train, which will stop at four stations between Jakarta and the West Java provincial capital of Bandung, is expected to travel at speeds of between 200km and 250km per hour.
The chairmen of China Railway Corporation and its Indonesian partner and signed the agreement on Friday at a ceremony attended by Chinese ambassador Xie Feng. The Indonesian side controls 60% percent of the joint venture’s stake in the project, while the Chinese business controlling the remaining 40% share.
Ambassador Xie said the high-speed railway would be China’s first overseas project developed entirely with Chinese technology and the largest investment value.
“This is a brand new episode in Indonesia, particularly in transportation project as it will further boost economic activities in areas along the corridor served by the high-speed train that eventually contribute to the national economic growth,” said Sahala Lumban Gaol, the chairman of the Indonesian partner.