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Jakarta touts deal, scrambling to keep $2.1bn rail project afloat

Indonesian ministers seek to end flip-flops in funding scheme

Workers at a construction site of the light rail transit project in Jakarta. (Antara Foto)

JAKARTA -- A railway system under construction in Greater Jakarta avoided hitting the brakes Friday after Indonesia's top ministers put together a funding scheme for the 29.9 trillion rupiah ($2.14 billion) project.

Ministers told reporters Friday night that they agreed on state railway operator Kereta Api Indonesia shouldering much of the project cost, or 25.7 trillion rupiah, via an equity injection and a syndicated loan. State construction company Adhi Karya will cover the remaining 4.2 trillion rupiah.

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