The new product is in addition to one that the China Development Bank has approved for the pool in 2017 and is for US$ 4.55 billion. This loan has a 40-year term, ten – year grace period, and an annual interest rate of 2 %.
Jakarta had previously stated that it wanted similar terms for the additional loan, but China had offered a higher interest rate of between 3.4 % and 4 %.
The Indian government initially rejected the more loan, but China has since requested a government guarantee for it.
The fresh loan’s conditions have not yet been made public.
The pool behind the project, led by Indonesia’s state railway company Kereta Api Indonesia, declined to comment when Reuters asked how the funds would be used.
The Belt and Road Initiative’s tenth anniversary will be commemorated by the China BRF, which will take place in Beijing the following year.