Russian Railways to build coal railway in Indonesia

Russian Railways is interested in taking part in the construction of a railroad in Indonesia, the company's President Vladimir Yakunin told reporters Friday.

Investment in the project will amount to US$2.5 billions, he added as reported by Russian media.

According to the Indonesian media, the Russian company is expected to build a 185-kilometer railroad linking Central Kalimantan and Eastern Kalimantan provinces to transport coal. Indonesian authorities are expected to sign a memorandum of understanding on the project with Russian Railways during President Dmitry Medvedev's visit to the Indonesian island of Bali for the East Asia summit in November, Rizal Affandi, Indonesian deputy economic minister for international cooperation, said earlier this month.

The plan, however, was vehemently opposed by Central Kalimantan governor Teras Narang, who said he will resign if central government insists to carry on with the project. He said that such project may harm the province?s protected forest and may cause flooding. He also pointed out to the agreement between the island?s four governors to build separate railways in their respective provinces. (*)