As Indonesia Seeks to Restructure Rail Debt, China May Use Talks to Broaden Yuan’s Global Role

File image of Indonesia's high speed railway that was built and financed by China. TIMUR MATAHARI / AFP

Indonesian debt talks with Chinese creditors over restructuring $7.3 billion of loans used to build the Southeast Asian country’s high-speed railway are on track, according to sources on both sides, but there are some confusing signals emanating from the negotiations.

Luhut Binsar Pandjaitan, chairman of Indonesia’s National Economic Council, said last week that the Chinese side had agreed to extend the repayment period to 60 years, which would dramatically reduce the cost to service the debt.

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by Eric Olander

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