Indonesia’s US$20 billion Bali LRT raises eyebrows over heavy China reliance

“We chose CRCC because it has a reputation as a global rail transport contractor, which has experience building 200,000km in more than 100 countries,” SBDJ President Director Ari Askhara told reporters during the groundbreaking on September 4 involving a ngeruwak, a Hindu ritual to cleanse a construction area before the project’s first stone was laid.

The LRT marks another milestone for state-owned companies from China, strengthening their grip on Indonesia’s infrastructure market, particularly in public transport. CRCC was one of the contractors that launched the US$7.2 billion Jakarta-Bandung high-speed railway, a flagship Belt and Road Initiative project in Indonesia, for commercial operations last year.

“This shows the closeness between Indonesia and China, between government to government and government to businesses,” said Bhima Yudhistira, executive director at Jakarta-based economic and policy research think-tank Center of Economic and Law Studies.