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(File Photo)

The Sino-Indonesian joint venture for a high-speed railway project signed a franchise agreement with the Indonesian Ministry of transportation on March 16, guaranteeing legal protection of the construction of the Jakarta–Bandung high-speed railway.

According to the agreement, the joint venture will have a 50-year franchise for the high-speed railway linking Jakarta and Bandung, starting from May 31, 2019. 

China and Indonesia began talks for the venture in March of 2015, ultimately signing an agreement on Oct. 16. The high-speed railway will be China’s first overseas project done entirely with Chinese technology.

The head of the Indonesian Ministry of Transportation, Ignasius Jonan, said at the signing ceremony that the joint venture received franchising less than two months after breaking ground on the high-speed railway—a timeline much shorter than for other domestic railway projects.

It was also the first time the country gave franchising to a venture funded through foreign investment, added Jonan. 

Delegates attend a photocall during the Joint Venture Agreement signing ceremony in Jakarta, Indonesia, Oct 16, 2015.

The 150-kilometer-long rail will link Indonesia's capital, Jakarta, with the city of Bandung, the fourth largest in the country. The high-speed railway has a designed speed of 350 kilometers per hour, and is planned to be built within three years. After starting operation, it will shorten travel time between the two cities to less than 35 minutes, where currently it takes more than three hours.