A 50-year design build operate maintain concession was signed in Jakarta on March 16 between the government and the Sino-Indonesian consortium promoting a 142 km fast passenger line between the capital and Bandung.

The concession held by the Kerata Cepat Indonesia Cina consortium takes effect on May 31 2019, when construction and commissioning of the US$5·5bn railway is expected to be completed. According to Transport Minister Ignasius Jonan, the consortium is expected to break-even on the project after around 40 years of operations.

Following the signing of the concession, the transport ministry was expected to issue the initial building permits on March 18 covering a 5 km starter section. The DBOM concession stipulates that the maximum speed on the line should not exceed 250 km/h, the distance between the running lines would be 4 600 mm and an ‘exclusivity zone’ stretching 25 km is to be established around each KCIC station. 

Three-quarters of the estimated US$5·5bn cost is coming via loans from China Development Bank, with China Railway International Co Ltd holding a 40% share in the KCIC consortium. Domestic participants include construction firm Wijaya Karya, toll road operator Jasa Marga and national train operator PT KAI.