New Investment Opportunity for Indonesia: Saudi Arabia to invest $1.6b in new LRT project
New Investment Opportunity for Indonesia and Saudi Arabia to collaborate in a $1.6b worth light rail transit project
Saudi Arabia will invest $1.6 billion in the light rail transit line connecting Soekarno-Hatta International Airport and Bumi Serpong Damai, a rapid growing suburban area southwest of Jakarta.
“We need to reduce congestion at Soekarno-Hatta Airport and in surrounding areas,” Minister of Transportation Budi Karya Sumadi said on the sidelines of the First Saudi Arabia Investor Forum in Jakarta on Monday (15/01).
More than 1.4 million residents of Bumi Serpong Damai (BSD) now have to rely on a 40-kilometer busy toll road. According to an estimation by the Ministry of Transportation, in the near future to it may take three hours to reach the airport. Now it is already one hour.
According to Budi, the cost of the LRT line is around Rp 20 trillion ($1.6 billion) which is a great investment opportunity for Saudi Arabia in 2018.
The project, he said, will be fully funded by the private sector. The government’s contribution, if necessary, will be in ticket subsidies.
Apart from the LRT project, during the forum Budi also invited investors to four of the “10 New Balis” — the government’s prioritized tourist destinations — Lake Toba in North Sumatra, Yogyakarta, Labuan Bajo in East Nusa Tenggara and Mandalika in West Nusa Tenggara.
Indonesia has been courting investors from Middle Eastern countries for the past few years. Oil giant Saudi Aramco plans to invest $5 billion to upgrade an oil refinery in Central Java.
The Saudi Arabia Investor Forum will conclude on Wednesday. It attracted 200 property and infrastructure investors from the kingdom to interact with local businessmen and explore opportunities in Indonesia.