Indonesia preps $40 B for a metro to rival Singapore’s

Indonesia is preparing to spend about $40 billion to extend Jakarta’s metro network, a bigger-than-expected outlay that’s poised to boost the country’s construction companies and reignite a rivalry between China and Japan over building the project.

The spending plan is part of President Joko Widodo’s ambitious roadmap to create a $7 trillion economy by 2045. While his administration has outlined a requirement to spend about $455 billion on infrastructure over the next five years, policy makers have until now revealed few specifics.

PT MRT Jakarta is currently selecting financiers to help fund the expansion. It’s seeking to add an additional six lines to the one that partially opened earlier this year, which could rival Hong Kong and Singapore in terms of length.

Indonesia will need assistance and funding from abroad for the plan to materialize, which opens the door for China and Japan to renew their rivalry in the country.

Source: Bloomerg