REPUBLIKA.CO.ID, JAKARTA -- The construction of the 124-kilometer Jakarta-Bandung high speed train (HST) can start soon after land clearance is completed and a permit is issued next week, a minister said.

"Hopefully, the construction permit for the HST will be issued next week, though a number of requirements still have to be met," State-owned Enterprises (SOE) Minister Rini Soemarno said after a meeting with Transportation Minister Budi Karya Sumadi in Jakarta on Thursday.

The two ministers met to discuss national connectivity and infrastructure development, including the Jakarta-Bandung high speed train project.

"In essence, the construction can already be carried out with a number of notes regarding lands," she said.

She also assured that the funding for the Jakarta-Bandung HST project will soon be disbursed after the issuance of the construction permit.

Regarding the financing scheme, Rini said the China Development Bank (CDB) will provide a loan of 75 percent of the total investment, amounting to about Rp70 trillion - Rp80 trillion.

Of the loan, some 70 percent funding will be in the US dollar currency while the remaining 30 percent will be in yuan denomination with a fixed annual interest for 40 years. Some 25 percent will be financed by the Indonesian SOE Consortium.

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