REPUBLIKA.CO.ID, REPUBLIKA.CO.ID, JAKARTA -- Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said China Development Bank (CDB) will open a representative office in Indonesia.

CDB is the financial agency which facilitates Chinese loan to finance development of the Jakarta-Bandung speed train project.

"Yes, we discussed with the Financial Service Authority (OJK) the CDB's plan to open a representative office here," Luhut said after a meeting with OJK chairman Wimboh Santoso here on Friday.

Earlier, Bank Indonesia Governor Agus Martowardojo said the government would welcome and facilitate foreign financial agency planning to open representative office in the country to support infrastructure financing plan.

"We would support any foreign financial agency wanting to support financing activities in Indonesia and if they want to open a representative here. We do need to continue facilitate financing sources," Agus said.

The Jakarta-Bandung speed train project would cost around US$5.1 billion (Rp67.8 trillion) with CDB to provide 75 percent in loan of the total cost. The consortium of PT Kereta Cepat Indonesia China (KCIC) will put up the remaining 25 percent.

The groundbreaking already took place in January 2016, and the concession license was issued only in March, 2016, but since then there was no progress made on the construction of the track on difficulty in land clearing.

West Java Governor Ahmad Heryawan said earlier this week, the process of determining the project site was almost completed, but KOIC is the one to be responsible for land clearing.

"We are not responsible only in determining the location, which is already 94 percent completed," the governor said.

Earlier, Minister for State Enterprises Rini Soemarno said that all conditions needed for the project loan from CDB would be fully met this week.

Rini said recalculation showed that the cost has swelled from US$5.5 billion earlier to US$5.9 billion not including engineering cost of soil contour.

The increase in the cost was caused by change in trace and development of tunnels and elevated track. Originally the entire length of track was to be built on ground.

Public Works and Housing Minister Basuki Hadimuldjono said 60 percent of the track would be elevated with tunnels making up 30 percent and ground track making up the rest.

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